(Bloomberg) -- The total value of stocks listed in Toronto overtook that of Paris for the first time since 2022, highlighting both the rally in Canadian shares as well as the financial damage resulting from the ongoing political crisis in France.
French blue chips, down about 1% year-to-date, have sharply underperformed their European and US peers since President Emmanuel Macron called surprise elections in June, which resulted with no single party holding enough seats to form a government and political gridlock.
Paris lost its crown as Europe’s biggest stock market to London in June amid concerns about French public debt spiraling up with Macron’s pro-business agenda in tatters. On the other hand, Canada has seen its market thrive, led by cyclical stocks such as Royal Bank of Canada, up 26% this year, and mining group Agnico Eagle Mines Limited, which rose more than 50%.
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Toronto’s S&P/TSX Composite Index has advanced 12% so far this year. It has also outperformed US peers since June, when the Bank of Canada cut interest rates and bolstered views regarding earnings growth. Record highs for gold prices have also helped boost valuations for the country’s large mining sector.
--With assistance from Michael Msika.
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