Evercore expects third-quarter investment banking and trading guidance from banks to come in below consensus estimates, citing capital markets indicators tracking below expectations. In its August Capital Markets Monthly report, Evercore noted that investment banking volumes fell 6% year over year in July, with debt capital markets and syndicated lending down 18%, while equity capital markets surged 119% and M&A rose 11%. Trading indicators improved after a slow July, with most fixed income, currencies, and commodities measures showing double-digit growth, including a 17% rise in FX and commodities, 10% in credit, and 2% in rates. Equities were mixed, with CBOE volumes down 4% but retail activity up 43% and options up 14%. Margin balances were 32% higher year over year, and Evercore suggests that current activity implies Street earnings estimates may be too high, with wealth management commentary expected to meet or slightly miss expectations.
Evercore Partners IncEvercore's report indicates bank guidance may miss consensus, affecting its own outlook.
