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European equity share sales fall about 20% in Q3 as conditions tighten
Bloomberg data compiled by LiveMint shows September was quieter than the prior year as investors weighed upcoming central bank decisions amid higher-rate worries.
European equity capital raising cooled in the third quarter as market jitters discouraged share sales, according to data compiled by Bloomberg and summarized by LiveMint.
The volume of European share sales declined about 20% year-on-year in Q3, with September notably quieter than last year, influenced by a less favorable market backdrop, investor hesitancy ahead of key central bank decisions, and a late Labor Day holiday.
LiveMint said the outlook for the fourth quarter looks less favorable as prospects for higher interest rates and inflation persist alongside ongoing geopolitical instability, while the pipeline of European IPOs is starting to thin.
JPMorgan’s Ashish Jhajharia, head of equity capital markets for Europe, Middle East and Africa, told LiveMint that headline indices near all-time highs and a relatively benign VIX do not remove concerns beneath the surface, particularly around rates, inflation, and geopolitics.
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