Europe’s IPO Market Is Back on Track: LSE
Activity in Europe's initial public offering (IPO) market is picking up and will drive economic recovery across the region, the CEO of the London Stock Exchange (LSE) told CNBC on Wednesday.
Xavier Rolet said equity market volumes had hit the bottom and would start improving in the near future.
"Of course we are in a fairly depressed environment in equity markets in terms of volume. This is not helped by self-inflicted wounds, as we've seen, for example, with the financial transaction tax project on the continent," Rolet said.
"But I think we're at the lows and the prognosis particularly for primary markets – what you'd describe as the IPO market - is very good. The pipeline is, in fact, outstanding, as has the performance been in the last 12 months."
(Read More: Hong Kong's IPO Market Is Heating Up)
The LSE on Wednesday reported a 7 percent rise in full-year revenue to 726.4 million pounds ($1.1 billion), driven by its information services business. The company's shares rose 2.6 percent on the news.
Rolet said he disagreed with the more negative economic outlook for Europe.
"I know it's a little bit doom and gloom out there, with some commentators continuing to feel very pessimistic, but we are seeing excellent signs of recovery in the IPO market – not just in the U.K., but also in Italy - and I'm comfortable that these improvements are going to feed into greater job creation in the European Union."
His comments come as official figures showed that France slipped back into recession in the first quarter of 2013, as its economy contracted by 0.2 percent quarter-on-quarter.
Germany also disappointed, growing by just 0.1 percent in the first quarter – highlighting that even Europe's largest economy is struggling to pull away from the economic crisis crippling the rest of the euro zone.
(Read More: France Slides Into Recession, Germany Disappoints)
Rolet told CNBC he was also bullish on the global economic recovery.
"There's an economic recovery gathering steam in the U.S., we've seen better-than-expected numbers in the U.K. I think Asia is also pointing the way towards a recovery," he said.
- By CNBC's Katrina Bishop, follow her on Twitter @KatrinaBishop