Clouds on cash equities horizon

European banks' second quarter results don't augur particularly well for cash equities bonuses, according to one banking analyst.

"July wasn't particularly good for cash equities," says Vasco Moreno, director of European research at investment bank Keefe Bruyette & Woods. "Volumes have slowed dramatically."

Almost every bank to have reported in the past week said cash equities activity was slower in the second quarter of the financial year than the first, says Moreno.

Even so, Moreno says cash equities revenues activity is still higher for the year to date than for the same period of 2006. But July could mark a turning point: "The jury is still out on whether this is going to be a good year."