London stock market £200bn less than Paris

Paris is now Europe’s biggest stock market, surpassing London amid a exodus from the City.

According to data, the London Stock Exchange (LSE), is currently $250bn smaller (£204bn), than its French counterpart.

After being overtaken by Paris, London lost its crown of Europe’s largest trading center for equities last November.

It has been falling further behind in recent months, following a weak performance of the FTSE 100. This is also amid a parade of businesses ignoring the Square Mile for New York.

According to data, the market value of Parisian stocks has increased by more than 10% to $3.1 trillion in November, while London’s combined capitalisation has grown only 2pc to $2.9 trillion over the same time period.

The Paris CAC 40 index outperformed London blue-chip index by more than 8pc this year, compared to a mere 0.1pc increase for the FTSE 100.

This represents a significant turn in fortunes over the past decade, with UK stocks nearly $2 trillion more in dollar terms than their French counterparts at one time in 2014. When the pound was stronger, it was a huge reversal in fortunes.

London has been referred to as “unloved” in recent years due to persistent political uncertainty and economic malaise.

Concerns about the City’s situation were exacerbated by the recent departure of CRH, a building material giant, from the London stock exchange to New York . British technology darling Arm said that it was also leaving London in order to avoid a bumper listing.

The European Central Bank (ECB), which also raided the Square Mile, told lenders that they must have staff in the EU if they are responsible of significant trading activity on Continent after the UK has left the bloc.

Goldman Sachs announced Wednesday that a senior London banker will be moving to Paris to oversee the development of its European trading business.

Goldman moved into a Paris-based headquarters of 9,000 square meters last year. The country’s head count has more than doubled in recent years.

After a long investigation into whether institutions were trying to skirt post-Brexit rules, the ECB had previously stated that 56 traders have been identified by it.