Saxo Bank, the bank that specializes in trading and investing in multiple assets online, today released its quarterly forecast for the second quarter of 2020 for global markets, including business ideas covering stocks, Forex, currencies, commodities and bonds, as well as a set of macro factors that influence On the clients' portfolios.


China is the first survivor of the global storm, stressing that despite the current deterioration in global stock markets, where price movements across different asset classes provide clear indications of the amount of pressure that exists and traders strive to obtain Liquidity. Eventually, the situation will stabilize, and he expected that global markets will witness a situation similar to that experienced in Asian markets in January and February, with fears easing in general.


"We need to reset the fundamentals and earnings expectations as policymakers work to address the challenge of the three threats - supply shock, demand shock, and low prices in the energy market." He added, "while China leads the world in terms of the economic slowdown we are witnessing." Currently, talks on this topic indicate that China's gross domestic product decreased during the first quarter of the year by 10% - to 20% -. It is also likely that we will witness a quarterly or quarterly annual slowdown in the European and US markets, and as a result, a paradox will emerge in the acceleration of Chinese economic growth during the second quarter as the rest of the world enters a phase of slowdown.


He explained that most Asian markets will benefit from the high growth rate in China, as China will recover about 50% of its trade with the region. He pointed out that with the eventual return of the service economy and the opening of restaurants again in all parts of the country, some Chinese provinces indicate a return to normalcy almost completely. He said that given the economic impact of the current crisis, we have to go back to the past and remember that this happened before after the longest period of ascent in the markets in its history. But with the arrival of summer in the northern hemisphere, and the possibility of devising a vaccine for the virus, it is expected that European and American markets will obtain benefits that were not available in the Asian markets.