JOHANNESBURG, SOUTH AFRICA: FBS, a licensed global broker with over 14 years of experience and more than 75 international awards has presented an overview of the most significant macroeconomic trends traders should consider in the fourth quarter of 2023. The brand’s mission is to equip traders with tools and knowledge to conquer the financial markets, and its financial market analysts have compiled an exhaustive list of three major Q4 challenges to the stock markets.
The global economy has not yet recovered from the pressing geopolitical and social risks of the past two years, and the turbulence is expected to continue in Q4 and into 2024. FBS analysts have identified the three most prominent tendencies that could push financial market volatility in the upcoming months.
Firstly, migration policy in the EU and the US could trigger regional disintegration, leading to an increased allocation of safe-haven assets like gold, making them a favorable investment target for the near future. Secondly, prolonged tight monetary policy could slow down stock markets in 2023, and the market is realizing the low possibility of stimulating monetary policy from regulators by the end of the year. Thus, in Q4, particular attention should be paid to European and American stock indices, as seasonality may provide significant support, and shares (especially on American exchanges) may rise. Nevertheless, the risks of continued decline may remain present even in 2024. Lastly, deglobalization of the energy market; Over the past years, the largest energy supply countries, including the Gulf members and Russia, have gradually disconnected from the European energy market. At the same time, the current vector of European policy and the EU’s shift from traditional energy sources will solidify the energy market. Consequently, in Q4, oil and gas prices are expected to remain stable or experience local fluctuations, potentially affecting global markets.
FBS Analysts indicate that financial markets will be challenged by political actions toward energy supplies and the development of monetary and migration policies for the rest of 2023 and beyond. Thus, traders should focus on agile trading strategies, exploit seasonality trends, and focus on defensive assets and mid-to-low volatility stocks.