U.S. banks were in the money today after a new report stated that they were set for a market revenue boost from tariff uncertainty.
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JPMorgan Chase (JPM) was up 0.6%, Wells Fargo (WFC) was 0.5% higher, and Citigroup (C) powered 0.7% forward.
Markets Boost
They were helped by analysis from Crisil Coalition Greenwich, which said that global banks, including the U.S. lenders, are expected to report a 10% gain in markets revenue as traders placed their bets on shifting U.S. tariff policies.
It comes ahead of the Q2 earnings season later this month, which is led by big banks.
Bank of America (BAC) and Citigroup executives said last month they expect markets revenue to climb by mid-to-high single-digit percentages in the second quarter, following a strong first quarter.
The revenues have been boosted after U.S. President Donald Trump’s tariff announcements in April spurred volatility in stocks and drove volumes to a record in the U.S. Treasuries market.
“Anybody that’s in the market-making business, providing people with instantaneous liquidity, is going to benefit,” a senior Wall Street executive said as quoted by Reuters. “Stocks went down, bonds went down, and the currency went down – your portfolio was just more risky, and we just saw derisking.”
Friendly Volatility
Coalition bases its estimates on 12 global banks both in the U.S. and Europe.
“Volatility is the friend of markets revenue,” said Mollie Devine, head of markets competitor analytics at Coalition. “Some of the tariff announcements were a positive catalyst for trading desks.”
In addition, she estimated equities revenues would gain 18% in the second quarter, while bonds would climb 5% compared with the previous year.
Tradeweb Markets (TW), which operates electronic marketplaces for rates, credit, equities and money markets, reported average daily volume of $2.7 trillion in April, up 38.6% from a year earlier. It posted a record $2.71 trillion average daily volume in March.
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