Reflation is prolonging the crisis - Saxo Capital Markets warns
of a 'rollercoaster ride' in the year ahead
Singapore, 19 January 2009 - Saxo Capital Markets, the online
trading and investment specialist, in its yearly Financial Outlook,
believes 2010 will be a year of reflation, and that the positive
trends from the latter half of 2009 will continue well into 2010.
However, 'structural headwinds' lie ahead that could turn 2010 into
a 'rollercoaster ride'.
As the economy emerge from one of the most severe recessions in
history, the biggest surprise in 2009 was the swiftness of the
recovery in the US and Euro-zone. Having started 2009 on an
extremely low point, the global economy responded to large amounts
of government stimuli. The sharp rise in risk willingness was
remarkable given the severity of the downturn and instead of
sideways markets, produced an almost straight line recovery for
equities in Asia.
Andrew Robinson, Market Analyst at Saxo Capital Markets states,
"In the long term, Asia will lead the recovery out of this crisis
for several reasons. There is more savings per capita than most
western economies, the banking and financial institutions are in
better shape and Asian governments will continue to generate jobs
through infrastructure projects."
"One additional important factor is that there isn't a
major government change scheduled to take place in key Asia markets
this year that would impede stimulus plans," says Robinson. "With
markets now pricing in strong growth in every corner of the world,
the stage is set for the economies to deliver."
The 2010 outlook also highlights the danger of prolonging the
crisis into 2010 as efforts to stimulate the economy stands in the
way of change towards long-term sustainability.
The full 2010 Outlook includes the following analyses:
Premises for yearly Outlook 2010: Year of Reflation
Financial Markets in 2010
Housing in 2010
Growth Perspectives for 2010
Policy Rates in 2010
2010: Breaking up the old patterns in FX?
Equity Outlook 2010
Energy in 2010: Little excitement in store
Commodity Outlook
About Saxo Capital Markets
Saxo Capital Markets Pte Ltd is a wholly-owned subsidiary of
Saxo Bank A/S, an online trading and investment specialist. It
serves as the Asia Pacific headquarters and holds a capital markets
services license under the Monetary Authority of Singapore. Saxo
Capital Markets also holds a commodity broker licence by The
International Enterprise Singapore.
Clients can trade Forex, CFDs, Stocks, Futures, Options and
other derivatives via SaxoWebTrader and SaxoTrader, the leading
multi-asset online trading platforms. SaxoTrader is available
directly through Saxo Capital Markets or through one of its global
partners. White Labelling is a significant business area for Saxo
Capital Markets, and involves the online trading platform being
customised and branded for other financial institutions and
brokers. The Saxo Bank Group has more than 120 white-label partners
and thousands of clients in over 180 countries. It is headquartered
in Copenhagen with offices in Australia, China, the Czech Republic,
France, Greece, Italy, Japan, the Netherlands, Singapore, Spain,
Switzerland, UK, and the United Arab Emirates.
For more information, please visit www.saxomarkets.com.sg
Media contact:
Saxo Capital Markets Pte Ltd
Fen Bai
+65 6303 7713
[email protected]