The UK has overtaken France to become Europe’s largest stock exchange.

Recent figures show that French stocks are now valued at $3.13 trillion (£2.47 trillion), while the UK’s stock market has surged ahead with a combined worth of $3.18 trillion (£2.51 trillion), according to Bloomberg data.

Thanks to the chaos triggered by Emmanuel Macron’s unexpected election call, which sent French markets into a nosedive, the Cac 40 index in Paris suffering its worst week since 2002. The announcement of a surprise parliamentary election erased all the year’s gains, just weeks after the index had reached record highs.

Shares in major French banks such as BNP Paribas and Credit Agricole tumbled by over 10 percent.

These banks hold significant amounts of French government bonds, which now face a massive sell-off amid the political turmoil.

The election upheaval also sent French government borrowing costs soaring, with interest rates on 10-year debt reaching levels not seen in two decades, comparable to those of financially troubled Portugal.

Meanwhile, here in the UK, the FTSE 100 is enjoying a surge of confidence, reaching record highs this year as investors are drawn to what they view as undervalued assets.

The UK’s stock market has also been boosted by new listings, further accelerating Britain’s financial momentum.

While France struggles with its political crisis, the UK basks in its newfound financial supremacy, illustrating the shifting dynamics of economic power in Europe.

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