European and Asian cities dominated the list as U.S. cities hit by the weak dollar tumbled in the rankings released on Sunday.
Shanghai, the world's most populous and fastest-growing urban centre, shot up eight spots to No. 24, given its growing importance in China's booming economy, while Los Angeles fell out of the top 10, to 17, as financial-services companies left.
"With a strong and secure economy, vibrant financial markets and a legal and political framework that supports high levels of International trade, London again secures the top spot in the Centres of Commerce Index in 2008," the report says.
"London towers over other cities not only in narrow financial terms but in a broader sense as well," said Michael Goldberg, Program Director, MasterCard Worldwide Centres of Commerce Program.
The index covers 75 cities, ranking them according to their legal and political frameworks, economic stability, ease of doing business, volume of financial activities, presence of financial institutions, reputations as business centres, contributions toward knowledge creation, and liveability.
"The European and Asian cities came out very strong," Goldberg said. "They became strong against the weak dollar."
New York, No. 2, and Chicago, No. 5, were the only two North American cities to make the top 10 global commercial centres.
Tokyo was third and Singapore fourth. Hong Kong was sixth followed by Paris, Frankfurt, Seoul and Amsterdam.
Moscow improved its financial clout the most, placing 51st due to its key role for commodities in Eastern Europe.
Regionally, Western Europe dominated with 10 of the top 25 cities, while Asia strengthened its reputation as an economic hub with seven of its cities in the top 25.
The highest-ranked Indian city was Mumbai at No. 48.
