Investors Concerned Over Prevailing Market Uncertainty
Saxo Bank Client Survey Reveals
Saxo Bank has unveiled the results of its latest client survey, shedding light on investor sentiments and expectations concerning the financial markets for the second quarter of 2024.
Despite the unpredictability of the global financial market, investors’ responses echo concerns over prevailing market uncertainty.
The Client Sentiment Survey aimed to glean insights into Saxo Bank’s clients’ expectations for the upcoming quarter.
The survey, which polled 185 respondents, was conducted among Saxo Bank’s global clients between March 12, 2024, and April 2, 2024. It was disseminated to respondents who had designated English as their preferred communication language.
The onset of 2024 witnessed a flux in market expectations. Initially characterised by pessimistic sentiments, with market players anticipating rate cuts, the scenario has shifted unexpectedly towards a more optimistic outlook, with many stock markets hovering around or reaching all-time highs.
Investor Expectations
Damian Hitchen, CEO of Saxo Bank in the MENA region, said: “Understanding investor expectations is pivotal for navigating dynamic markets.
“The findings of this survey underscore the significance of staying abreast of macroeconomic events and geopolitical tensions, guiding our clients to make informed investment decisions amidst the interconnected market landscape of the MENA region.”
Peter Garnry, Head of Equities Strategy at Saxo Bank, added: “Investors, including Saxo clients, entered 2024 with optimism following a robust 2023 marked by recession avoidance and impressive equity returns.
“This stance has been validated thus far in 2024, despite unusual volatility in expectations surrounding central bank policy rates and inflation.”
The survey panel exhibited a mixed sentiment regarding the primary US S&P 500 index, with slightly over half of the respondents anticipating an increase while 30% foresee a decrease.
Regarding regional performance, half of the investors envisage North America outpacing other financial regions.
Conversely, approximately 40% of respondents harbour concerns about Europe lagging, reflecting a divergence in conviction among market participants.
Central Bank Policies
Central bank policies emerged as a pivotal factor influencing the financial markets for this quarter, as per investor citations in the survey. Geopolitical tensions, the imminent US election, and persistent recession apprehensions were identified as significant factors likely to impact investment strategies.
“With interest rate cuts continually deferred, heightened geopolitical tensions, and the looming US election, considerable scope exists for heightened volatility in financial markets, prompting clients to reassess whether their portfolios are geared for a potentially turbulent quarter and beyond,” Peter stated.
Featured image: Central business district skyline in Shanghai, China, on May 1, 2024. Credit: ArnoldTop of Form
