Article contentU.S. banks reported strong earnings for the second quarter and analysts at Scotia Capital Markets think that’s a good news for their Canadian counterparts, which release third quarter earnings at the end of August. Meanwhile banking fees jumped 16 per cent from the first quarter at U.S. giants Goldman Sachs Inc. and Morgan Stanley. Scotia Capital has 12-month price targets of $239 and $169 for BMO and TD. CIBC Capital Markets analyst Paul Holden said U.S. capital markets results bode well for BMO, Royal Bank of Canada (RY:TSX) and National Bank of Canada (NA:TSX) due to their exposure to U.S. investment banking franchises and equity trading desks. However, Holden warned investors capital markets could switch from a “tailwind” to a “headwind if market conditions shift.”