US tech drop fires warning shot at Europe ECM

By Aidan Gregory, Sam Kerr
10 Sep 2020

The resilience of capital markets in the face of the coronavirus pandemic has encouraged equity issuers and sellers to bring an abundance of IPOs, rights issues and block trades this autumn. Indices have bounced since their March nadir but their vulnerability — and that of ECM activity — to the tech stocks that have driven the rebound was made stark this week when the Nasdaq index fell more than 10% in two days, write Sam Kerr and Aidan Gregory.

The Nasdaq 100, the most popular index for high growth tech stocks, fell 10.9% between the close of business on September 2 and Tuesday this week. It recovered in trading on Wednesday but was still 7.9% down for the week.

The recovery in the market on Wednesday was encouraging ...

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