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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

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Little worry that US banking results will turn into a slasher movie on Friday the 13th

With their UK peers due to start updating the market the week after next, JP Morgan Chase, Citigroup, and Wells Fargo will all reveal first-quarter figures on Friday

It might be Friday 13th but there is almost nothing on the UK corporate diary to spook investors, and barely a piece of economic data expected either.

All the focus, therefore, will be across the Atlantic and the start of the reporting season for US banks, which hopefully won’t resemble a slasher movie.

With their UK peers due to start updating the market the week after next, JP Morgan Chase & Co (NYSE:JPM), Citigroup Inc (NYSE:C) and Wells Fargo & Co (NYSE:WFC) will all reveal first-quarter figures on Friday.

In a preview, David Madden, market analyst at CMC Markets (UK) pointed out that the banking sector has been hit by falling trading revenue as lower market volatility and tighter regulation has led to a drop in fixed income, currency and commodities earnings.

In the last reporting season the major US banks had one-off tax bills in relation to the new tax laws in the US, but now that is out of the way, there should be reduced tax bills this time out.

He also noted that the recent interest rate hike by the Federal Reserve should also assist the banking sector, as a higher rate environment helps lenders to improve margins.

Significant events expected on Friday April 13:

Trading update: XP Power Limited (LON:XPP)

AGM: Low & Bonar PLC (LON:LWB)

Economic data: US consumer sentiment; US JOLTS jobs

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