After a handful of big-ticket deals, some punchy January numbers and a string of predictably bullish analyst notes, the temptation is to buy into the hype and declare that mergers and acquisitions are poised to make their long-awaited comeback. But before uncorking the champagne it is worth bearing in mind that for every indicator pointing to a big jump in dealflow, there are half a dozen negative signs that suggest we are facing another barren stretch in 2011.

Reading the M&A tea leaves is a popular pastime for deal-hungry bankers at this time of year. Financial News takes a closer look at some of the common barometers of future M&A activity and sees little cause for celebration.