Wall Street executives have gloomy outlook on third-quarter trading results

© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange in Manhattan, New York City© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange in Manhattan, New York City

By Olivia Oran

(Reuters) – Executives from JPMorgan Chase & Co (N:), Bank of America Corp (N:) and Goldman Sachs Group Inc (N:) warned on Tuesday that trading conditions during the third quarter were likely to be poor for their banks.

Revenue from trading of stocks and bonds continues to suffer from decreased market activity and volatility, the executives said, speaking at a conference in New York sponsored by Barclays (LON:) Plc.

Bank of America sees revenue from trading stocks and bonds likely to decline around 15 percent in the third quarter compared with the year-ago period, its chief financial officer, Paul Donofrio, said.

JPMorgan Chief Executive Jamie Dimon gave an even more downbeat forecast for his bank, predicting a 20 percent drop in trading revenue. Dimon said he may stop giving trading guidance because investors were too focused on short-term results.

Goldman President Harvey Schwartz said conditions for fixed-income trading have not improved much since the beginning of the year, but he declined to be specific.

“The market environment in the third quarter feels like thefirst and second quarter,” Schwartz said. For fixed income, currency and commodities, he said, “it’s still a pretty challenging environment.”

In the second quarter, Goldman reported a 40 percent drop inbond trading revenue and the weakest commodities results in its history as a public company.

The company is taking steps to grow its fixed income trading business, including courting a greater number of asset managers and banks to trade with the firm and expanding its footprint with corporate clients.

Other banks also expect a trading slump during the third quarter.

Citigroup Inc (N:) may see revenue in stock and bond trading drop as much as 15 percent during the period, CFO John Gerspach said on Monday.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Stock Market News

You May Also Like

Leave a Reply