We examine the financial linkage between the London and Amsterdam financial markets using stock prices recorded in each market o¨er the period 1723᎐94 in conjunction with tests for common trends, cycles, and regime shifts. These tests re¨eal a surprising degree of integration between the markets as their prices mo¨e together in both the short and long run. Moreo¨er, shocks to the assets translate quickly and accurately between markets. It also appears that Dutch in¨estment did not destabilize London markets and stock prices in London were the primary Ž . determinant of prices in Amsterdam. JEL F32, G15, N23