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Credit Suisse Group AG and Deutsche Bank AG both posted double-digit drops in trading revenues amid an overall dismal third quarter for global investment banks, S&P Global Market Intelligence data shows.
Seasonal market weakness and continued investor worries about geopolitics and worsening global trade relations affected fixed-income trading in particular, with most leading U.S. and European institutions reporting lower third-quarter revenues than a year ago. Seven of the 13 banks in the S&P Global Market Intelligence sample reported lower overall trading revenues, due mainly to weak performance in fixed income.
The main dampeners on credit and rates markets over the quarter were concerns related to a potential escalation of the U.S.-China trade tensions, emerging markets instability and European worries about the political situation in Italy, global investment firm Schroders said in its quarterly markets overview. Positive economic data from the U.S., in particular, acted as a counterbalancing factor on bond markets, the firm said.
Restructuring effects
Burdened additionally by its strategic restructuring, Credit Suisse and Deutsche Bank posted the steepest year-over-year drops in total third-quarter trading revenues of 19.82% and 14.64%, respectively....