Morgan Stanley's Q3 profit down 42% as trading revenue falls

New York

WALL Street bank Morgan Stanley's profit slumped for the second straight quarter as investors fled the bond, currency and commodity markets amid uncertainty about the timing of a US interest rate hike and concerns about China's cooling economy.

Morgan Stanley, the last of the big US banks to release third-quarter earnings, said on Monday that its trading revenue fell 17.2 per cent to US$2.03 billion in the period, contributing to a 42.4 per cent drop in profit attributable to shareholders.