Bloomberg reports that bank investors may have to wait at least another quarter for trading to rebound as analysts expect lower trading revenue in the current period, the fifth straight year-over-year drop, amid weaker volume and market declines.
Fixed-income trading revenue at U.S. banks likely will fall 30 percent from the first quarter, while equities trading will drop 15 percent, Keith Horowitz, a Citigroup Inc. (C) analyst, wrote in a report this week. Seven analysts have cut their earnings estimates for Goldman Sachs Group Inc. (GS) and Morgan Stanley in the past four weeks, according to data compiled by Bloomberg.
Wall Street faced lower trading volumes as clients stepped back amid concerns that the Greek debt crisis will spread to other European nations and evidence that U.S. economic growth is slowing. Declining trading revenue expectations have fueled share declines of more than 10 percent at each of the six largest U.S. banks since March 31.
“There are a number of headwinds and the markets haven’t really been cooperating,” said James Ellman, president of San Francisco-based hedge fund Seacliff Capital LLC…
Find out more at:
http://www.bloomberg.com/news/2011-06-22/goldman-estimates-fall-as-analysts-see-weak-trading-revenues-at-u-s-banks.html
No comments:
Post a Comment