Debt and M&A bankers both enjoyed their busiest December in five years last month, leading analysts to update their full-year estimates and giving bankers hope that positive momentum might be building in to the New Year.

Global merger and acquisition volumes hit $304.6bn in December, according to Dealogic, the highest December volume recorded since 2007, and up 31% from November. It was also the second highest monthly volume recorded in 2012, after October. The increase in activity was driven by $135.5bn of US-targeted M&A and $105.2bn of deals in Europe, the Middle East and Africa.