FBS, a leading global broker, has released a report giving an overview of the macroeconomic trends that could have the greatest impact in Q4 of 2023. The publication gives traders pointers to equip them with tools and knowledge to conquer the financial markets in line with the macroeconomic trends. Market analysts at FBS compiled a list consisting of three major challenges to stock markets, expected to come in Q4.
A look into the markets in Q4 2023 and 2024
In a nutshell, FBS financial analysts state that the geopolitical and social risks carried over from 2021 are existential and will likely overflow into Q4 of 2024. Thus, in summary, the analysts say that traders should adopt agile trading strategies, ride the seasonality waves, focus on defensive assets and mid-to-low volatility stocks.
Below is a brief analysis of the three most prominent tendencies that could impact financial markets in the coming months, as presented by FBS analysts:
Migration policy in the EU and the US: The migration policies of Europe and the United States have come under strain in recent years. Right-wing politics and increased focus on national minorities have eaten into the liberal support for immigrant-fueled cheap labor.
According to FBS, this trend is likely to remain stable in 2023 and 2024, with the downside being potential regional disintegration. In terms of market shifts, this is expected to drive more investors to safe-haven assets like gold. Consequently, this could make safe-haven assets a suitable investment in the coming months.
Prolonged tight monetary policy: High key rates have defined 2023, resulting from attempts by governments to reign in inflation. Furthermore, stock markets have largely been resilient this year, with notable growth in some stock exchanges in the EU and the US. However, as things stand, the possibility of dovish monetary policy from regulators looks increasingly unlikely as the year nears its end. Thus, according to the analysts at FBS, investors should pay greater attention in Q4 to European and American indices. Nevertheless, there remains the possibility that the markets could continue to experience a decline even in 2024.
Deglobalization of the energy market: FBS says that the changing trends in the global energy market will likely continue along the current trajectory, with a growing disconnection between Gulf states and Russia, on the one hand and the European energy market on the other. Furthermore, the EU’s policy shift from traditional energy sources will have a significant impact on the energy market. With these factors at play, the FBS analysts predict that oil and gas prices will remain largely stable in Q4, with some local fluctuations.