The year of political pain for initial public offerings (IPOs)just got worse.

Global IPO volumes this year have fallen 35 percent to about$120 billion, according to data compiled by Bloomberg. DonaldTrump's surprise victory in the U.S. presidential race Tuesdaycould mean a further dip in deals while investors work out theeffect his policies will have on the economy.

“Institutional investors have very few clues about what a Trumppresidency means for the U.S. economy,” said Adam Young, head ofequity capital markets at Rothschild & Co. “They will want todigest what the new administration says about its economic policyover the course of the next few months, and that will have abearing over how much capital they invest in the equitymarkets.”

Europe saw its share of pain following the U.K.'s June vote toleave the European Union as a slew of companies—including Germanlandlord OfficeFirst, U.K. financial-software maker Misys, andTelefonica SA's O2 unit—canceled IPOs amid low demand.

“Markets will be more stop-and-start,” Young said. “Everyone ismore cautious, more fussy, and valuations will be more robustlynegotiated.”

More Muted

Still, stock markets' response to the U.S. election result was moremuted than postBrexit.

“There were indications that the market might have been 5 to 10percent off if Trump won, but that hasn't happened yet,” saidRichard Penny, a senior fund manager at Legal & General GroupPlc. “The market's functioning fully at the moment, though thegreater political uncertainty means some people will be less likelyto commit cash to new deals.”

With elections in France and Germany next year, as well as anupcoming referendum in Italy, the uncertainty factor may take awhile to dissipate.

“We will have a number of European political milestones thisyear and next year, and investors will be watching them carefully,”said Craig Coben, global head of equity capital markets at Bank ofAmerica Corp. “The market has been, and continues to be, openbut not indiscriminate.”

Asia, which hasn't had the same political uncertainties,reported the largest share of volumes this year, with companies inthe region raising about $64 billion, according to data compiled byBloomberg. The shares were also the strongest once they werelisted, gaining 79 percent, the best performance among geographicregions, according to the data.

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