Saxo Capital Markets Outlook 2010: 'Year of Reflation'

Reflation is prolonging the crisis - Saxo Capital Markets warns of a 'rollercoaster ride' in the year ahead

Jan 19, 2010, 06:06 ET from Saxo Capital Markets

SINGAPORE, Jan. 19 /PRNewswire-Asia/ -- 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'.

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As the economies emerge from one of the most severe recessions in history, the biggest surprise in 2009 was the swiftness of the recoveryin 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

    Media contact:

     Saxo Capital Markets Pte Ltd
     Fen Bai
     Tel: +65-6303-7713

SOURCE Saxo Capital Markets