Exploring the rebound of equity markets in 2024, with a focus on market trends, optimistic outlook for global IPOs, convertible market analysis, Australia's sector trends, and European business refocusing.
2024 market rebound driven by micro fundamentals and new risks/rewards balance.
IPO market revival in 2024 indicates investor optimism and importance of early engagement.
Deep dives
Economic Environment Outlook for 2024
In 2024, the economic environment is expected to be influenced by factors like the US elections, with market participants showing high engagement and interest. Despite previous turbulence, signs of market stability are emerging, with a focus on stable but slightly higher interest rates. Earnings growth will play a crucial role in driving market expansion, requiring companies to deliver growth to satisfy investor expectations.
IPO Market Expectations for 2024
The IPO market is poised for a resurgence in 2024, with increasing interest and engagement from analysts and portfolio managers. Investors are eager to explore new IPOs, indicating a positive outlook. The Canadian market anticipates quality issuers and emphasizes the importance of early investor engagement for IPO success. Despite recent IPO market absence, optimism surrounds the quality and frequency of upcoming deals.
Equity Capital Markets Trends and Themes
In the coming year, a balanced approach to transactions and creativity in deal structures are key themes shaping the equity capital markets. There is a shift towards a strategic perspective on going public, emphasizing long-term business growth and value creation. Financial sponsors play a crucial role in driving ECM activity, particularly focusing on companies with a balance of growth and profitability. Sector-specific trends include increased support for on-strategy M&A, growth financing in the resources sector, and a resurgence of interest in the tech industry.
After a year of macro volatility, equity markets look set to rebound in 2024, with a return to micro fundamentals, a stronger breadth of transactions, and a new set of risks and rewards for investors and issuers to balance.
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