American shares aren’t affected by October's marquee deals
The record deal making volume for October didn’t generate a ripple effect raising American shares as it did in the past - partly due to the fact the mergers, although large, were few as analysts and bankers revealed.
In spite of the fact acquisitive corporate bosses managed to generate up to $329 billion worth of takeovers in October, the biggest month for American M&A on record, according to Thomson Reuters news, the 615 deals, which were announced, dared to mark the lowest number of monthly deals since March, 2013. By the way, the top four deals alone represented more than half the month's total.
The very essence of those deals clearly indicates that while confidence might be running relatively high in board rooms of many large companies, that’s not necessarily widespread across corporate America. The stock market's 1.9% descend in October, as evaluated by the S&P 500 index, appeared to be more of a thud than a soaring roar.