Saxo survey reveals investor sentiment aligns with general market uncertainty

Business

Saxo survey reveals investor sentiment aligns with general market uncertainty

Saxo Bank, a global leader in online trading and investment, has unveiled the findings of its latest client survey, providing insights into investor expectations and sentiments on the financial markets for the second quarter of 2024. Against the backdrop of unpredictability in global financial markets, the survey reflects concerns over market uncertainty among investors.

The beginning of 2024 has witnessed shifting market expectations, initially characterized by overall pessimism as market players anticipated rate cuts. However, sentiment has unexpectedly turned more optimistic, with many stock markets reaching or nearing all-time highs.

Damian Hitchen, CEO of Saxo Bank MENA, emphasized the importance of understanding investor expectations in navigating dynamic markets. He stated, "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."

Peter Garnry, Head of Equities Strategy at Saxo Bank, noted the positive outlook among investors coming into 2024, following a strong 2023 with avoided recession and significant returns in equities. He highlighted that this positive stance has been rewarded despite unusual volatility in expectations around central bank policy rates and inflation.

Regarding regional performance expectations, the survey revealed a divided sentiment towards the primary U.S. S&P 500 index, with just over half of respondents expecting an increase and nearly thirty per cent anticipating a decrease. Furthermore, half of the investors see North America outperforming other financial regions, while approximately 40% believe Europe will lag, indicating mixed conviction among market participants.

Central bank policies emerged as a crucial factor influencing this quarter's financial markets, with geopolitical tensions, the upcoming U.S. election, and ongoing recession concerns also significant factors impacting investment strategies.

Peter emphasized the potential for increased volatility in financial markets due to postponed interest rate cuts, high geopolitical tensions, and the approaching US election. He urged clients to review their portfolios to ensure they are equipped for a potentially turbulent quarter and beyond.