European bankers heartened by signs of a return to mergers and acquisitions activity in domestic markets will be disappointed to note that companies in the region have all-but stopped buying overseas targets, suggesting a recovery in deal-making is some way off.

According to data provider Dealogic, European outbound M&A volume stands at $41.5bn (€29.3bn) year to date, a sharp fall of 82% from the same point last year and its lowest level since 2003.