Saxo Bank, a global leader in online trading and investment, released the findings of its recent client survey, shedding light on investor expectations and sentiments on the financial markets for the second quarter of 2024. Amidst the backdrop of unpredictability in global financial markets, the response from our panel of investors mirrors concerns over market uncertainty.
The beginning of 2024 has been characterised by changing market expectations. Initially, the sentiment overall was largely pessimistic, as market players anticipated rate cuts. Since then, it has shifted unexpectedly towards becoming more optimistic, with many stock markets at or near all-time highs.
"Learning about investor expectations is vital for navigating through dynamic markets. The results of this survey reaffirm the importance of staying informed about macroeconomic events and geopolitical tensions, guiding our clients to make informed investment decisions in the MENA region's interconnected market landscape," said Damian Hitchen, the CEO of Saxo Bank MENA.
"Investors, including Saxo clients, came positively into 2024 after a strong 2023 in which a recession was avoided and great returns were delivered in equities. This position has been rewarded so far in 2024 despite unusual volatility in expectations around central bank policy rates and inflation," Peter Garnry, Head of Equities Strategy at Saxo Bank, added.
U.S. is expected to outperform, while Europe may lag behind
The panel of clients had a divided sentiment towards the primary U.S. S&P 500 index, with just over half of the respondents expecting an increase. At the same time, nearly thirty per cent anticipate a decrease.
When asked about regional performance, half of the investors see North America outperforming other financial regions. Conversely, approximately 40% of the respondents believe Europe will lag, highlighting the mixed conviction among market participants.
Central bank policies play a crucial role.
Investors cite central bank policies as a critical factor influencing this quarter's financial markets. The survey highlighted that geopolitical tensions, the upcoming U.S. election, and ongoing recession concerns are also significant factors that could impact investment strategies.
"With interest rate cuts continuing to be postponed, geopolitical tensions still high, and the US election getting closer, there is a lot of room for increased volatility in financial markets that merits that clients review whether their portfolios are set up for a turbulent quarter and beyond, " says Peter.
Explore the full results of the sentiment survey here: https://www.home.saxo/en-mena/content/commentaries/pressrelease/saxo-survey-reveals-investor-sentiment-aligns-with-general-market-uncertainty-01052024.
About the survey:
The Client Sentiment Survey aimed to gain insights into Saxo’s clients' expectations for the upcoming quarter.
The survey consisted of 185 respondents and was distributed to Saxo clients between 12/03/2024 and 02/04/2024. It was executed in English and sent to potential respondents globally who had selected English as their preferred communication language.
About Saxo Bank
At Saxo, we believe that when you invest, you unlock a new curiosity for the world around you. As a provider of multi-asset trading and investment solutions, Saxo’s purpose is to Get Curious People Invested in the World. We are committed to enabling our clients to make more of their money. Saxo Bank was founded in Copenhagen, Denmark in 1992 with a clear vision: to make the global financial markets accessible for more people. In 1998, Saxo launched one of the first online trading platforms in Europe, providing professional-grade tools and easy access to global financial markets for anyone who wanted to invest. It was also the first Scandinavian bank to establish a presence in the GCC when it launched an office in Dubai, back in May 2009, to cover its regional operations for the MENA region.
Today, Saxo is an international award-winning investment firm for investors and traders who are serious about making more of their money. As a well-capitalised and profitable Fintech, Saxo is a fully licensed bank under the supervision of the Danish FSA, holding broker and banking licenses in multiple jurisdictions, including a Representative Office license by the Central Bank of the UAE.
As one of the earliest fintechs in the world, Saxo continues to invest heavily in our technology. Saxo’s clients and partners enjoy broad access to global capital markets across asset classes on our industry-leading platforms. Our open banking technology also powers more than 200 financial institutions as partners by boosting the investment experience they can offer their clients. Keeping our headquarters in Copenhagen, Saxo employs more than 2,500 professionals in financial centres around the world, including London, Singapore, Amsterdam, Hong Kong, Zurich, Dubai and Tokyo.
For more information, please visit http://www.home.saxo/me.
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