AFTER THE CRASH CAUSED BY THE QUARANTINEThe market capitalization of the biggest European exchanges has increased by 1.8 trillion dollars

A.V. (Translated by Cosmin Ghidoveanu)
English Section / 13 august 2020

The coronavirus pandemic has affected the global stock markets, causing significant volatility and heavy drops in share prices, but over the last few months they have recovered their ground, nearing their pre-Covid-19 values.

According to data by Forex School Online, the market capitalization of the biggest stock exchanges in Europe was nearing 14 trillion dollars at the end of June 2020, up 1.8 trillion dollars after the collapse caused by the quarantine.

The source notes that the combined market value of the pan-European Euronext exchange and the British London Stock Exchange increased by 929.5 billion dollars during the mentioned period.

In December 2019, the combined market value of Euronext, London Stock Exchange, Deutsche Börse, Swiss Stock Exchange, Nasdaq Nordic & Baltic Exchanges, Moscow Exchange and Madrid Stock Exchange was $ 15.9 trillion, according to Statista and World Federation of Exchanges (WFE) data. After the collapse of the markets in March (Black Monday), caused by the Covid-19 pandemic, this value decreased to 12.1 trillion dollars in the third week of that month, which represented a decline of almost 20% in the first three months of this year, according to the source.

Over the next 30 days, Europe's seven largest exchanges grew by $ 879 billion, reaching a market value of $ 13 trillion, Forex School Online said, adding that the growth trend continued over the next two months, and market capitalization increased by more than $ 1 trillion between April and June.

According to statistics, Euronext, which is the largest stock exchange in Europe, recorded a market capitalization increase of $ 616.8 billion after the collapse caused by the Covid-19 pandemic, reaching $ 4.2 trillion at the end of June .

The London Stock Exchange, the world's second-largest and seventh-largest European stock exchange, reached a market capitalization of $ 3.2 trillion in June, up $ 312.7 billion compared to March. According to Statista figures, the combined market value of the two major European stock exchanges increased by $ 929.5 billion between March and June 2020.

Statistics also show that the third largest European stock exchange, Deutsche Börse, has recovered from the decline caused by the Covid-19 pandemic. While in December 2019, prior to the pandemic, the market capitalization of the Frankfurt-based exchange was 1.99 trillion dollars, at the end of the third week of March, after the outbreak of the coronavirus outbreak, it had reached 1.5 trillion dollars, losing 21% in three months. Subsequently, the value of Deutsche Börse made up some of the lost ground, rising to $ 1.93 trillion in June, a level only 3% lower than it used to be prior to the pandemic.

According to WFE, the market capitalization of Nasdaq Nordic & Baltic Exchanges rose by $ 277.2 billion after the pandemic crash, and the Swiss Stock Exchange (Swiss stock exchange), Moscow Exchange (Moscow stock market) and Madrid Stock Exchange from Madrid) followed the same course, with increases of 154.9 billion, 108.1 billion and 48.48 billion dollars, respectively, according to the quoted source.

S&P Global: Major European banks have lost 40% of their market value in 2020

The market cap of the top 20 major European banks has declined by 40% since the beginning of this year, according to an analysis published this month by S&P Global Market Intelligence, which shows that the decline was caused by the coronavirus crisis and fears about a possible second wave of the pandemic.

Europe's largest creditors (in terms of assets) reached 466.07 billion euros on July 31, 2020, from 776.50 billion euros on January 1st. Thus, in the first seven months, the British giant HSBC Holdings Plc lost 64 billion euros of its market value (-45%), which reached 77 billion euros, down from 141 billion euros. British mortgage lender Lloyds Banking Group Plc recorded a decline of 59%, to 21 billion euros, from 51 billion euros.

The largest French bank, BNP Paribas SA, reached a capitalization of 43 billion euros, down from 66 billion euros (-34.8%), and Italian giant UniCredit SpA saw its market valuation shrink to 17 billion euros, from 29 billion euros (-41.4%). The source reports that ING Groep NV in the Netherlands saw its market capitalization go down to 23 billion euros, from 42 billion euros (-45%), while the capitalization of UBS Group AG, Switzerland's largest banking group , decreased to 36 billion euros, from 41 billion (-12.2%).

Spanish bank Banco Santander SA lost 51.6% of its market value, which reached 30 billion euros, from 62 billion euros.

In contrast, the largest German bank, Deutsche Bank AG, saw its market cap grow to 16 billion euros, from 14 billion euros, due to an improved evolution driven by its spending cuts program and to its revenues from investment banking operations. Deutsche Bank is the only one of the 20 major European banks that saw an increase in its market cap (+ 14.3%) between January and July 2020, according to the source.

S&P Global: The market value of mining companies rose in July

The stock market capitalization of mining companies increased, on average, by 22.3% in July 2020, compared to June 2020, the upward trend being felt for the fourth month in a row, according to S&P Global Market Intelligence. The top 25 players in the industry, including 13 precious metal and six base metal manufacturers, saw their market capitalization increase last month, without exception.

According to the source, the SNL Metals & Mining index rose 12.1% between June 30 and July 31st, while SNL Precious Metals gained 17.9%. At the same time, the SNL Base Metals index rose by 14%, and SNL Diversified Mining - by 9.3%.

S&P Global Market Intelligence shows mining giant BHP Group, the world's largest, saw its market capitalization rise 2.5% in July to $ 123.47 billion, but it was still down 11.4% compared to July 2019. The world's number two, Rio Tinto, had a market capitalization of 102.61 billion dollars at the end of July, up 1.6% compared to June, and number three, Vale SA, stood at 60.04 billion dollars, up 8.6% from June. Compared to July 2019, Rio Tinto saw its valuation decrease value by 1.9%, but Vale's capitalization increased by 21.9%, according to the source.

Newmont Corp. Mining Company rose 12.3% in July, from $ 55.63 billion in June and Barrick Gold Corp. rose 6% to $ 51.39 billion. The two companies increased their market capitalization by 85.8% and 83.1%, respectively, compared to July 2019. The Glencore Plc Group had a market capitalization of $ 27.18 billion in July 2020, higher by 2%. compared to June 2020, and down 42.4% compared to July 2019.

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