Rus News Journal

Russia recognised as a part of Europe

the Old World has surpassed New in capitalisation

the European stock market for the first time from the XX-th century beginning has bypassed on capitalisation the American. Now Europe advances the USA on 160 mlrd dollars About it data Thomson Financial testifies. Experts notice that Europe is in many respects obliged to this achievement of Russia.

according to Thomson Financial, Europe has bypassed the USA on stock market capitalisation on March, 28th and since then increases the separation. By data for April, 2nd, cost of the companies placed in the USA has made 15,68 trln dollars, and actions of the companies which are quoted at 24 stock exchanges of Europe, including Russia, Turkey and the East Europe countries, cost 15,84 trln dollars From the beginning of 2003 capitalisation of the European stock market has grown on 160 %, and American - on 70,5 %, that is growth in the USA was in 2,3 times less.

the Considerable contribution to growth of capitalisation of the European stock market was brought by Russia. The domestic stock market for last year has grown with 490 mlrd to almost 1 trln dollars Now, according to Thomson Financial, to Russia 5,6 % from the all-European capitalisation of stock market are necessary that in absolute expression makes nearby 890 mlrd dollars If to accept inclusion of the East Europe countries in concept of Europe the contribution of Russia really considerable as the Russian stock market has begun with lower base, therefore its growth went fast rates - the analyst of investment bank Fox - Pitt, Kelton has underlined Andrew Mitchell. Group economist Deutsche UFG Yaroslav Lisovolik also considers the Russian contribution considerable. most likely, it will increase and further as nedootsenennost rossy - skih actives which was earlier enough considerable, will decrease. Besides, it will depend on how will pass IPO the Russian companies which in growing degree pass in the domestic market, and also in Europe - the expert has summed up.

experts notice that the similar situation when Europe overtook the USA on capitalisation of share actives, last time developed before the First World War.

in the beginning of the XX-th century capitalisation of the American and British stock markets was comparable. At that time the European stock exchanges as a whole surpassed the American. However by 30 years Americans have surpassed British already seven times. World War I has urged on growth of the American exchange sector - expert London Business School Mike Stonton has told daily.

In Thomson Financial two principal causes of rapid growth of stock market of Europe mark. in - the first, this falling of a dollar exchange rate, and in - the second, the general economic lifting of the European countries - head of project Datastream in Thomson Financial Thomas Obri has explained daily.

And Yaroslav Lisovolik has specified daily that the American stock market in the USA negatively influences it zaregulirovannost. It leads to that considerable part IPO and a considerable part of financial activity moves to Europe. And the American trading platforms lose European - he is convinced.

experts also consider that the establishment of new balance of forces in stock market was considerably affected by sphere of private investments. this sector is most developed in the USA, but there it as well most ripened. At the same time in Europe many the companies attractive to investment funds, and the European actions grow on hearings about possible absorption - Mike Stonton believes.

Andrew Mitchell has added that blossoming of direct investments in the USA leads to a conclusion of a great number of actions from stock market that, in turn, reduces its capitalisation. At the same time, he believes that the statistics on rapid growth of stock market of Europe is connected by that in research the developing East Europe countries, including Russia, and also Turkey were considered. in many respects all depends what to consider as Europe - he has underlined daily. However, in Thomson Financial also recognise that Europe has bypassed the USA on stock market capitalisation including at the expense of expansion of concept of Europe. however it is impossible to exclude from research a floor - Europe. After all many argue and concerning that, as Great Britain is not included into Europe. We used geographically recognised definition - Thomas Obri has explained.