Equity issuance in the UK last month fell below $1bn (€711m) for the first time in two years, as the country's capital markets were roiled by contagion from the meltdown in the US sub-prime mortgage sector.

Shares worth a total of $963m (€685m) were issued in August, a six-fold drop from July and the lowest monthly volume since August 2005, according to data compiled by research provider Thomson Financial.