J.P. Morgan Chase & Co. CEO Jamie Dimon on Tuesday said trading revenue at the U.S.’s largest bank may be down by as much as 20% in the current quarter, compared with last year’s period, extending a downturn in trading amid muted volatility. Wall Street trading has been particularly soft even as stocks and bonds have been rallying in the waning period of a market that has been supported by central-bank buying across the globe, which has mostly subdued big swings. Market gyrations tend to help boost trading revenues bu the current environment, as measured by the CBOE Volatility Index , which gauges options bets on swings in the S&P 500 index , show a market that is well below its historic average of 20. The VIX was most recently around 10.81. Goldman Sachs Group Inc. also has been hurt by weak trading revenues, with its second-quarter results showing a 40% drop in fixed-income trading, compared with the same period last year. Still, shares of J.P. Morgan were up 1.5% in Tuesday afternoon trade, while Goldman’s sahres were up 2.7%, providing the biggest lift to the Dow Jones Industrial Average . Dimon made his remarks at an event Tuesday afternoon sponsored by Barclays , where he was introduced by his former JPM employee and current Barclays CEO Jes Staley.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News