JP Morgan’s investment bank, considered a standard-setter for the rest of the industry, has kicked off fourth-quarter reporting seasons by showcasing two key challenges likely to impact its peers: a trading environment that remains subdued and a reversal of accounting gains booked three months earlier.

The US bank is the first of the top-tier banks to report figures for the fourth quarter - and is closely watched for warning signs concerning the rest of the industry due to its historically strong results since 2007.