Saxo Bank Q2 Outlook 2012: The Great Balancing Act

Copenhagen, Denmark (ots/PRNewswire) -

A crisis has been avoided for now but policies continue to
inflict harm

Saxo Bank, the online trading and investment specialist, believes
a reasonably positive economic momentum barring a geopolitical crisis
is likely during Q2 2012. The eventual return of QE seems inevitable
as central banks try to keep the crisis at bay and the compounding of
policy errors failing to address the solvency problem and growing
social and geo-political friction will potentially lead to an
explosive outcome.

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According to the Bank's analysts, Europe will continue on the
path of flat growth despite the Eurozone having entered recession at
the tail-end of last year. However the rebound in economic growth in
the US will eventually spill over into Europe, and Asia will continue
to aid its growth through imports. If the recovery in the US fails to
provide enough jobs momentum a return of QE some time in Q3 may be a
possibility. In Asia, the critical question is China, as losses on
investments continue to accumulate and eventually need to be
realised.

Also, Saxo Bank predicts that commodities will face a bumpy road
ahead as geo-politics have intensified the unpredictable nature of
oil markets. Grain prices risk rising sharply and gold is expected to
consolidate during the early part of Q2. Volatility will return to
the equity market in Q2 as stimulus is withdrawn and safer, dividend
paying stocks will outperform. The Australian dollar is the least
favourite of the major currencies with the most to lose relative to
the Chinese landing and its current valuation and the Chinese Yuan
could also lose steam as China's terms of trade shift and on reduced
capital inflows.

Steen Jakobsen, Chief Economist at Saxo Bank, comments: "The
financial experiment initiated by policy makers post Lehman is now in
its fourth year with very little to show for it.

"The world central banks are in a race to print the maximum money
possible in order to weaken its currencies vis-a-vis the other
struggling countries, a beggar thy neighbor premise as a solution and
ultimately the market will have to start pricing in that we have seen
the low in interest rates as unconventional measures disappear and
get replaced by low rates and weak growth as long as the eye can
see."

The full Q2 2012 Outlook includes the following analyses:

- Equities
- FX Outlook
- Monetary Policy: Central Banks
- Asia Outlook: China - a different (re-)balancing act
- Commodity Outlook: Oil markets looking for right balance

Please visit our Quarterly Outlook
[http://www.saxoworld.com/mediacentre/quarterly-outlook ] page or
download the Q2 Outlook 2012 here
[http://www.saxoworld.com/Documents/Outlook/Q22012.pdf ].

About Saxo Bank

Saxo Bank is a leading online trading and investment
[http://www.saxobank.com/trading-products ] specialist. A fully
licensed and regulated European bank, Saxo Bank enables private
investors and institutional clients to trade FX, CFDs, ETFs, Stocks,
Futures, Options and other derivatives via three specialised and
fully integrated trading platforms; the browser-based SaxoWebTrader
[http://www.saxobank.com/en/trading-platforms/pages/internet-trading.
aspx ], the downloadable SaxoTrader [http://www.saxobank.com/en/trad
ing-platforms/pages/trader-download.aspx ] and the SaxoMobileTrader
application available in over 20 languages. Saxo Bank also offers
professional portfolio and fund management through Saxo Asset
Management who accommodates high-net worth private clients and
institutional investors and provides banking services and advice to
retail clients through Saxo Privatbank. The Saxo Bank Group is
headquartered in Copenhagen with offices throughout Europe, Asia,
Middle East, Latin America and Australia.

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ots Originaltext: Saxo Bank (Switzerland) SA
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Media enquiries Kasper Elbjørn, Head of Group Public Relations,
+45-3065-4300 press@saxobank.com