IFSL’s annual Financial Market Trends on Europe vs. US: As EU markets fell by more, the US gained in relative size.
02 November 2009
It compares key financial markets in Europe with the US and reveals that in nearly half of activities the US share rose relative to Europe between 2007 and 2008 as US markets fell by less. In 6 markets, Europe’s share rose relative to the US.
IFSL’s annual report Financial Market Trends: Europe vs. US brings together and compares the size of key financial market in Europe with the US. IFSL’s October 2009 report found that in nearly half of indicators - 8 out of 17 – the size of financial markets in the US improved relative to those in Europe in 2008. In most cases this was because US markets declined by less than those in Europe. Europe’s position relative to the US improved in 6 markets with the relative position unchanged either way in 3.
This IFSL report brings together and compares the size of key financial markets in Europe with the US. It is based on annual data for 2008 with the impact of the financial crisis showing through in decline in many financial markets including a slump in net securitisation issuance and a sharp drop in investment banking revenue, equity market turnover and IPOs. The full effects of the economic downturn will show through more fully in 2009. The survey reveals that in nearly half of activities, 8 out of 17, the US share rose relative to Europe between 2007 and 2008, while in 6 markets Europe’s share rose relative to the US.
There was no relative change either way in 3 other activities. The largest relative gains in Europe and the US in 2008 were in those markets where each was already stronger. For Europe this included international bank lending, foreign exchange turnover and insurance premiums. While for the US it included foreign equity trading, equity market turnover and domestic bonds. Over the longer term between 2001 and 2008 Europe’s share has risen in 13 out of 17 markets where data were available. This long term trend demonstrates London’s continuing importance as the capital for many of Europe’s wholesale financial markets.
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