Mergers and acquisition volumes are expected to remain strong for the rest of this year, in a move that should provide support to equity market valuations, which have come under pressure as economic conditions have continued to worsen.

The recent pick-up in M&A activity, with 33 deals announced in Europe in the last month, draws a “line in the sand” under equity market valuations, according to analysts at Goldman Sachs, who are predicting continued takeovers.