Market Cap of Europe’s Five Largest Stock Exchanges Dropped by $1.5trn in H1 2020

Economic turmoil caused by the coronavirus outbreak has delivered a severe impact on stock exchanges worldwide. Although stock markets started recovering after the Black Monday crash in March, sharp price falls resulted in a significant decrease in their market capitalization.

According to data gathered by StockAps, the combined market cap of Europe’s five largest stock exchanges dropped by $1.5trn in the first half of 2020.

Euronext and London Stock Exchange Lost $1.3trn in Combined Market Capitalization

In January, the combined market capitalization of Euronext, London Stock Exchange, Deutsche Börse, SIX Swiss Exchange, and NASDAQ Nordic and Baltic Exchanges, as the five largest stock exchanges in Europe, stood at $14.4trn, revealed the World Federation of Exchanges data. After the Black Monday crash in March, this figure plunged to around $11trn, a 23% fall in three months.

However, statistics show Europe’s largest stock exchanges started recovering in April, with their combined market capitalization reaching $11.7trn that month. By the end of June, this figure rose to $12.7trn. However, the value still represents an 11% drop compared to January figures.

As the largest stock exchange in Europe, Euronext witnessed an 11% drop in market capitalization during the first half of the year, falling from $4.8trn in January to $4.2trn in June.

London Stock Exchange lost $953bn in market capitalization in the first half of 2020. In January, the market cap of Europe’s second-largest stock market stood at over $4trn. After the COVID-19 crash in March. This figure plunged to $2.9trn, a 27% decrease in three months. Although the second quarter of 2020 witnessed recovery with the market cap reaching $3.2trn in June, this figure still represents a 20% drop since the beginning of the year.

Statistics indicate Europe’s two largest stock exchanges lost over $1.3trb in combined market capitalization in the first half of 2020.

Deutsche Börse and SIX Swiss Exchange Close to Pre-COVID-19 Values

The World Federation of Exchanges data also revealed that Deutsche Börse, and SIX Swiss Exchange, as the third and fourth largest stock exchanges in Europe, significantly recovered after the COVID-19 crash, with their market capitalization reaching pre-pandemic values.

In January, the market cap of Deutsche Börse hit over $2trn. After a 22% plunge in March, the market capitalization of Germany’s largest stock exchange recovered to over $1.9trn in June.

The SIX Swiss Exchange lost 2% in market capitalization in the first half of 2020, with the combined value of all stocks listed in Zürich falling from $1.84trn in January to $1.76trn in June.

Statistics show the market cap of NASDAQ Nordic and Baltic Exchanges, the last on the list of Europe’s five largest stock markets, stood at $1.56trn in June, a 2.8% drop since the beginning of the year.