The United States Confirms its Stock Market Supremacy

In the ranking of the world’s 100 largest capitalizations, 61 of them are American. China is left behind. Switzerland can still count on its usual heavyweights.

Apple, Microsoft, Alphabet, Amazon, Tesla, Meta (ex-Facebook), Nvidia and Berkshire Hathaway. In the top 10 of the world’s largest market capitalizations, there are eight US companies. This is one sign that the United States is confirming, and even increasing, its supremacy in the field.

Among its ten most expensive companies in the world are the hydrocarbon giant Saudi Aramco and TSMC, the Taiwanese semiconductor maker. But not enough to call into question the position of the United States in this matter. In the ranking of the top 100, the study published Wednesday morning by the audit firm EY counts 61 companies based on American soil. That’s three more than at the end of last year.

This advance leaves China, 2nd, even further behind than it already was, with 11 companies, against 16 at the end of 2020. The EY study does not mention it, but other experts do. have already analyzed: this decline is the result of stock market disappointments, in the wake of warnings and regulatory assaults from Beijing against its technological giants.

But if American domination is so clear, it is also because Europe is losing ground. At the end of 2007, 46 of the 100 largest companies had their head office on the Old Continent. Today, they are down to 16. A demonstration of Europe’s difficulties in bringing out technological giants, according to Stefan Rösch-Rütsche, managing director of EY in Switzerland.

In terms of sectors, technology, with 28 representatives, is at the top of this top 100. It is ahead of consumer goods (24), health (15) and finance (14).

Switzerland, like Japan, Canada and the Netherlands, places three companies in this top 100. There is of course Nestlé, in 22nd place with a market value of 381.5 billion dollars. Next are the two Basel pharmas Roche, 25th (337.2 billion), and Novartis, 62nd (195 billion). “Considering the size of Switzerland, this is an excellent record,” said Stefan Rösch-Rütsche, quoted in the press release. This shows that the country still has many companies that are active all over the world and which are successful worldwide. This success depends on the one hand on the soundness of infrastructure, the stability of political conditions, the framework conditions of the market economy and the fair level of taxes. But it also testifies to the strength of innovation and the power of Swiss companies in the market. ”

In this little game of stock market giants, Switzerland is just behind France and its four companies (LVMH, L’Oréal, Sanofi, Total). On the other hand, it is ahead of Germany and the United Kingdom, with their two respective representatives.

This ranking, carried out twice a year, cannot be completely hermetic against the covid pandemic. Thus, EY focuses on the lightning rise of German biotech company BioNTech. The vaccine manufacturer, associated with Pfizer for the vaccination campaign against Covid-19, fell from 1153rd place at the end of 2019 to 896th place at the end of 2020. It currently reaches 296th place, with a market capitalization of 61.5 billion of dollars. It was worth less than 7 billion at the end of 2019.

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The United States Confirms its Stock Market Supremacy - /10

Summary

In the ranking of the world's 100 largest capitalizations, 61 of them are American. China is left behind. Switzerland can still count on its usual heavyweights.

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