Coronavirus outbreak shutters ECM after Asia market battering

By Sam Kerr
30 Jan 2020

European equity capital markets’ buoyant start to the year ground to a halt this week as banks held back from doing deals over concerns about the outbreak of a deadly strain of coronavirus in China and how it may damage investor risk appetite. Losses in Asian markets, which are reopening following the Lunar New Year holiday, have compounded fears that global risk sentiment may be turning.

As of Thursday morning, there had been no European ECM transaction of over €100m in more than a week, according to Dealogic data, and only €659m of issuance overall.

That is a marked change from the previous eight days, January 15-22, when €5.5bn of paper was priced in ...

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