Peter Garnry, Head of Equity Strategy at Saxo, talks the most popular stocks among bank's clients.
The year has started on a strong note extending the momentum from the last quarter of 2022 which was fueled by China pivoting away from its zero Covid policy adding a positive impulse into the global economy. Besides the Chinese reopening adding to sentiment the market is increasingly betting on a shallow recession if any recession in the US economy, and a European and Chinese economy that will increase economic activity throughout the year. In addition, the market is pricing in inflation continuing to come down and central banks moving closer into a pause phase on policy rates avoiding tighter financial conditions. The combination of all these things have caused technology stocks to rally significantly in first month of trading with interest jumping massively in Tesla shares being the most traded stock. Tesla shares have generally enjoyed the positive sentiment in equities, but their aggressive price cut across several key EV models earlier this year is seen as a bold move and a sign of strength. Tesla shares are up 41% in January. Microsoft is another top traded stock and while the company reported a muted outlook for year as enterprise technology spending is coming down due to a cost focus among its customers the news that it has invested $10bn in OpenAI, which is behind the famous ChatGPT, has created a lot of attention by investors and Saxo clients.
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Top Stocks (Shares)
1. Tesla Inc.
2. ASML Holding NV
3. Amazon.com Inc.
4. Microsoft Corp.
5. Apple Inc.
