Accommodative signals from the Treasurer and Central Bank Officials underpin Investor confidence: Citi survey

Citi Australia has concluded its 12th annual Australia and New Zealand Investment Conference, hosting nearly 2,000 investors and fund managers from over 80 companies across Australia, New Zealand and around the globe.

Conference delegates voted on a range of topics in a sentiment survey – key findings include:

• 69% of investors at the conference thought the S&P would +5% higher by September 30, 2021
• 38% of respondents have their portfolios positioned for a democratic sweep
• 69% of investors polled believe New Zealand will move to negative rates in the first half of 2021
• 78% of attendees voted that the terminal rate for the RBA will be 10bps, with only 30% of respondents believing we will reach negative rates
• 41% thought travel would return to pre-COVID levels by 2023
• Better political leadership or policy certainty was voted the most likely factor to ensure Australia makes the most of the industrial transition happening globally, by 52% of respondents
• 32% of investors thought US-China relations would deteriorate following the US election if more protectionist policy was put in place, though 42% thought it would remain stable.

Commenting on the results, Citi Australia's Head of Investor Sales Mark Woodruff said "It is clear that investor confidence is underpinned by the continued supply of fiscal stimulus and the expectation of further monetary stimulus in both Australia and New Zealand. During his speech, the RBA Governor clearly outlined his willingness to do more with monetary policy and we have seen a significant market reaction in kind.

"The question of record low rates and expansive fiscal policy permeated all discussions, and it's interesting to see the poll results indicating increased confidence of a Democratic sweep, and in turn a majority of respondents looking for equity markets to be higher in a year despite the uncertainty of the recovery due to COVID-19.

"The conference has provided a great vote of confidence in returning to some form of normality, with great attendance across the two days in addition to record virtual numbers," Mr Woodruff concluded.