Retail equity demand will fall to the lowest the market has seen since 1996, according to research from Schroder Salomon Smith Barney.

It may also augur the lowest level of new equity supply since 1997. New equity in the first seven months of the year is down 42% from twelve months ago. SSSB's report, the European Portfolio Strategist, predicts there will only be €30bn ($26.3bn) of new supply for the rest of the year. This will take the total for the year to €100bn, well short of the tally in 2000 and 1999.