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End of year rally? Where do the Saxo Strats team see the best returns
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After what's been described as a 'dovish broadside' from the ECB this week, sparking a spike in forex trading which led to the second largest volume day in EURUSD for four years, there's a growing consensus around a prediction of an end of year rally. Add to that the latest rate cuts from China, the expectation of cuts from Japan plus Australia and the markets are licking their lips.
That's the emerging sentiment anyway, but how best to position portfolios? There are still plenty of dark clouds over the global economy which threaten to take the shine out of positive analysis. Maersk lines, often seen as a barometer of global trade, has issued a rare profit warning, adjusting its expectation for 2015 from an underlying result around USD 4 billion to an underlying result of around USD 3.4 billion. A reflection of China's growth slowdown and poor trade figures.
To help us navigate through the noise and chart a portfolio allocation which can cope with the current market sentiment, we talk to Saxo Bank's Head of Commodity Strategy Ole Hansen and Head of Fixed Income Simon Fasdal