Saxo Bank Survey Reveals Investor Sentiment Aligns With General Market Uncertainty

Trading Systems
10.05.2024 01:10 pm

Saxo, a global leader in online trading and investment, releases 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.

"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," Garnry added.

U.S. expected to outperform, while Europe may lag behind

The panel of clients had a divided sentiment towards the major U.S. S&P 500 index, with just over half of the respondents expecting an increase, while nearly thirty percent anticipate a decrease.

When asked about regional performance, half of the investors see North America as outperforming other financial regions. Conversely, approximately 40% of the respondents believe Europe will lag, highlighting the mixed conviction among market participants.

Central bank policies to play crucial role

Investors cite central bank policies as a key factor that will influence the financial markets this quarter. 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 continue to be postponed, geopolitical tensions still high, and the US election gets 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 Garnry.