US banks have dominated the market agenda all week and it was no different today, with both Goldman Sachs and Citigroup reporting fourth quarter results.

Goldman's adjusted earnings per share of $4.60 were significantly weaker than last year's fourth quarter but beat consensus forecasts of $4.18. The better than expected figures were driven by a strong performance from Goldman's equity underwriting business, including the Twitter IPO.

The fixed income trading division - traditionally the powerhouse of Goldman - posted revenues 15% lower than the same quarter last year. However, they were still up from the third-quarter in 2013, which was the weakest in several years. Goldman's CDS spreads rallied by 1bp to 89bps, which is the tightest level in just over three years.

Citigroup's results, on the other hand, were disappointing. The bank's adjusted EPS of 82 cents missed the consensus estimate of 95 cents by some distance. Fixed income trading revenues fell compared to last year and the previous quarter, unlike Goldman, where there was a sequential improvement. Citigroup's spreads widened 2bp to 72bps.

From a credit perspective, both banks are in considerably better shape than where they were last summer, at the height of the "taper tantrum." The differential between Goldman and Citigroup is now about 17bps, which is the smallest since May 2013.

The mixed results from US banks contributed to the mildly negative trading session. The Markit iTraxx Europe opened slightly tighter but lost ground after US markets opened. It traded at 70.5bps in late afternoon, about 0.75bps wider than yesterday. The Markit CDX.NA.IG fared worse, widening by 1.5bps to 65bps.

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