• Citigroup reported strong third-quarter earnings Friday, beating analyst expectations and growing profit by 12%.
• Trading revenues were robust in aggregate, but equities momentum slowed, growing just 1% compared to the same period in 2017.
• Cash equities was fingered as the culprit, with losses overshadowing gains in the prime and derivatives businesses.
• “We just didn’t do as good a job navigating the choppy trading environment in cash equities,” CFO John Gerspach said.
• The stock-trading business, which had experienced growth in recent periods, was reorganized in March.

After a hot start to the year, Citigroup is showing signs of weakness in one its equities business lines.

When most of us think about safe-havens, the Swiss franc comes to mind. A pillar of historical strength and security, the Swissie is one of the go-to assets when financial waters become turbulent. In the midst of last week’s chaos in U.S. and global equities, one would think that the USD/CHF was in for a correction. This did not occur. Rates closed in the green for the third consecutive week.