Wall Street banks reported US$37bn in first-quarter trading revenues as volatility linked to Washington’s administration spurred increased investor activity, marking their strongest performance in a decade.

Higher-risk borrowers are facing tighter financing conditions following tariffs introduced by the previous US administration, dampening dealmaking prospects and prompting major banks to scale back support.

The PM and business leaders remain alert to potential challenges as the US commerce chief warns that a short-lived tariff exemption on technology may soon lapse, prompting preparations for possible knock-on effects in global trade.

The Federal Reserve has signalled its willingness to intervene if market pressures intensify under fresh tariffs, prompting concerns over inflation and prompting investors to offload bonds and dollar holdings.