Quarterly Outlook
Equity outlook: The high cost of global fragmentation for US portfolios
Charu Chanana
Chief Investment Strategist
Market volatility on April 3–4 sparked a sharp rise in trading activity among Saxo Singapore clients. From US tech stocks to FX pairs and safe haven assets, clients were quick to reposition.
The top instruments saw a 100–600% surge in trading volumes compared to the average of the previous four days, reflecting both opportunistic plays and hedging strategies.
Here are some key takeaways:
1. Tech on fire
The biggest surges were in high-beta US tech stocks: Apple (+621%), Micron (+512%), AMD (+495%), NVIDIA (+238%), Meta (+246%), Amazon (+203%), Alphabet (+102%).
As tech stocks experienced sharp price moves, many clients appeared to take the opportunity to buy into the dip, especially in AI-related names and chipmakers. The surge reflects not just momentum-chasing but opportunistic buying on weakness.
2. Major ETFs saw strong pickup in ativity
Clients also turned to broad-based ETFs to gain or hedge equity exposure:
The rise in ETF trades points to tactical index exposure amid market swings—whether to catch a rebound or to reduce single-stock risk. Given the pullback in equities, some clients likely saw it as a window to accumulate broad market exposure at more attractive levels.
3. FX trading picked up significantly
Several risk-sensitive USD pairs had triple-digit trade volume jumps: USDCHF (+346%), GBPCHF (+193%), AUDUSD (+170%), XAUUSD (+150%), USDJPY (+106%), reflecting strong interest in safe havens, commodity FX, and macro trades.
These moves suggest clients were reacting to evolving macro uncertainty. Trading activity points to both macro speculation and currency hedging.
4. Gold & Silver got shine
Both precious metals saw large increases in trading:
This reflects renewed demand for safe haven assets and inflation protection, particularly as broader markets turned choppy.
5. E-mini and Micro E-mini trading spiked
Clients also actively traded index futures:
The spike suggests clients were using futures for short-term directional plays or to hedge broader equity portfolios during the volatility window.
6. ETOs (Exchange-Traded Options) gained traction
There was notable growth in ETO trading:
This reflects increasing adoption of options strategies to either amplify gains on a rebound or limit downside risk—especially relevant during turbulent market sessions.
Whether seizing short-term buying opportunities or positioning defensively, Saxo SG clients showed agility and a growing toolkit of strategies. Market volatility may create uncertainty—but for active investors, it also creates opportunity.