J.P. Morgan cuts PT on US trust banks amid economic uncertainty

Brokerage J.P. Morgan cuts PT on U.S. trust banks after tariffs spark trade war fears

Trims BNY BK.N to $87 from $94, Northern Trust NTRS.O to $110.5 from $118, and State Street STT.N to $91.5 from $108.5

Says turmoil in the markets due to uncertainty in the economic outlook with tariff trade wars will hurt revenues in their core businesses, servicing and asset/wealth management

Adds that there should be some offset from higher FX trading revenues in the near term

Brokerage prefers BNY due to "more diversified revenue mix"; says STT the most exposed among trust banks to the sharp drop in markets because of the higher share of revenues from servicing and asset management

As of last close, BNY up ~9.6% YTD, NTRS down ~3.7%, and STT down ~8.7%