BofA and Morgan Stanley trading wins

The first month of the conflict in the Middle East has provided an unexpected windfall for the 'big six' US lenders, with total trading revenue projected to exceed $40 billion for the quarter.

Morgan Stanley's stock traders delivered their best-ever performance, taking in $5.15 billion, while Bank of America's commodities revenue jumped by 60 per cent.

Executives noted that the 'charged' volatility environment allowed their desks to avoid a single daily loss during the period of peak uncertainty.

However, many bank chiefs also issued a note of caution, warning that 'imported' inflation from rising energy costs could eventually dampen economic growth.