Higher Rates Cool European Equity Deals After Strong First Half

European companies sold fewer shares in the third quarter than they did a year earlier.

This followed a busy first half, when companies raised $89 billion by selling stock.

Higher interest rates, inflation worries and world events have made investors more cautious.

Some companies still raised money recently to support deals and growth.

Bankers say strong company earnings could help keep investors interested.

But companies planning to go public may wait for better conditions, and investors are paying close attention to valuations.

Convertible bonds have also become more attractive to some companies as borrowing costs rise.

Bankers remain hopeful that companies will continue to raise money, even if the IPO market takes longer to recover.