US investment banks blamed volatile markets and a lack of investor appetite for their weak trading revenues, but it is exposure to domestic bonds that is set to hit their European rivals in fourth quarter earnings due be reported this week.

According to research from Societe Generale's Cross Asset Research team, revenues from trading fixed income, commodities and currencies are set to fall by 30% year on year among European banks. US banks, who have already reported their quarterly results, posted a 20% fall in FICC revenues.