Saxo Bank's Q3 Outlook: Waiting for Godot

Hellerup, Denmark (ots/PRNewswire) -

Saxo Bank' strategists expect the third quarter to be good for
assets and believe Q3 could actually be a major pivot point, marking
the end of excessively easy money and a turning point towards the
slow withdrawal of QE. The "Godot" Saxo Bank is waiting for is the
wake-up call - the reforms needed to get the global economy back on
track.

This quarter could see the stock market climb higher, driven by a
tailwind of central banks and a supporting cast of politicians only
too willing to delay any real reform. Continued sluggish growth
figures out of the US and Europe, while not perfect conditions for
the economy, are ideal for the ongoing equity market rally because it
keeps the wake-up call on hold.

Saxo Bank's analysts argue that for a real recovery to occur, the
small and medium sized enterprises (SMEs) - which make up 80 percent
of the economy - need to be enabled, through lending and regulation,
to innovate and create new jobs.

This quarter will also host a key event with the German election
on September 22. Only after the election will we see a more
determined attempt by the new German government and parliament to
shape Germany's EU policy. Currently Europe remains "overbanked" with
undercapitalised banks, an issue that needs to be resolved before
credit can flow again in Europe.

Saxo Bank is preparing for a significant slowdown in the EU in the
fourth quarter, with a number of events on the horizon that will be
difficult to keep under control, including; Greece's non-compliance
with Troika demands; Portugal's political instability; the recession
in Ireland; Italy and France's reluctance to implement any real
reform and the political scandal in Spain.

Steen Jacobsen, Chief Economist at Saxo Bank, comments:

"Europe can't stave off reform much longer and will have to stop
pretending very soon. The next quarter looks good for assets, but we
believe the next peak in economic cycles and assets won't come until
2017, so enjoy this one while it lasts.

"If the beginning of the end of QE is indeed coming this quarter
there is still the possibility that it could also be the starting
point towards an all-time low in interest rates in 2014, when the
final bill comes due."

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SaxoTrader app
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platforms are available in over 20 languages and are white-labelled
by more than 100 major financial institutions worldwide. Saxo Bank
also offers professional portfolio and fund management as well as
traditional banking services through Saxo Privatbank
[http://www.saxoprivatbank.dk ]. Founded in 1992, the Saxo Bank Group
is headquartered in Hellerup, Denmark with 24 local offices
throughout Europe, Asia, Middle East, Latin America, Africa and
Australia.

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

Contact:
Kasper Elbjørn, Head of Group Public Relations, Saxo Bank,
+45-3065-4300, press@saxobank.com; MHP Communications,
+44(0)203-128-8560,
saxobank@mhpc.com