Investment Banks Will Benefit from Higher Trading Volatility -- Market Talk

Dow Jones03-10

1206 GMT - Higher market volatility means investment banks are processing more trades, in turn lifting their trading revenue, J.P. Morgan analysts write. The uptick is important for banks' headline revenues as "the key to investment banking revenues is trading, not investment banking fees," the analysts write. Banking fees could suffer from a downturn in deal flow sparked by uncertainty surrounding the conflict in the Middle East and negative sentiment around private credit, the analysts say. Lower valuations mean European investment banks are preferred to their U.S. peers, they add. Investment banks lead a broader rally in European financials Tuesday. Barclays gains 4.3%, while Santander surges 5% in Spain. Societe Generale climbs 4% in Paris.(josephmichael.stonor@wsj.com)

 

(END) Dow Jones Newswires

March 10, 2026 08:07 ET (12:07 GMT)

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