Fears rise for FICC after Wall Street disappoints
Expectations for third quarter earnings at Europe’s investment banks have taken a knock, following a disappointing round of US bank earnings that saw trading performance remain muted. European banks may also be losing market share in trading, and any poor performance will be compounded by the strong euro.
“US banks’ third quarter results confirmed weakness in FICC trading, with equities flat and investment banking up 8%,” according to analysts from Credit Suisse. “The strength of the euro against the dollar during the quarter presents a headwind.”
The currency headwind will hit Deutsche Bank the hardest, as
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