London has lost its place as Europe's largest stock market to Paris, reports Bloomberg.

According to the agency, the total value of stocks of companies traded on these exchanges is $2.823 trillion for the French stock market and $2.821 trillion for the British stock market.

It is specified that one of the reasons was the growth in shares of French luxury brands, including LVMH and Gucci. Shares of these companies are growing in the conditions of lifting the coronavirus restrictions in China, so investors are predicting an increase in demand for their products among Chinese buyers.

Another reason is said to be the pound sterling's fall against the dollar since the beginning of the year by 13%, while the euro has fallen against the dollar by only 9%.

According to a former member of the monetary policy committee of the Bank of England, Michael Saunders, cited by Bloomberg, the negative impact on the British stock market in terms of large-scale and long-term trends had a Brexit, which greatly reduced the potential GDP.