The market witnessed mixed in trend despite the worst GDP data.
The global market witnessed a mixed trend. The major indexes from the European region declined sharply between 3 to 5%. European equities had fallen after a reading of drop in Germany’s GDP output shrank around 10.1 %, The tweet from Trump “delaying the election until peoples securely vote and Travel stocks sold off after UK’s quarantine move on Spain.
Despite the harmful GDP growth data, the US stock indices S& 500 and Nasdaq 100 had a sharp weekly gain of around 1.79 % and 3.69 % respectively due to the significant earnings report of big tech companies (Amazon, Facebook, and Apple) shows better than expected. However, the Dow Jones Index slipped around -0.16 % amid the ongoing impact of Covid-19, GDP contraction.
Shanghai and Kospi-100 Indexes from APAC region climbed sharply around 2 to 3.5%. On the other hand, Japan’s Nikkei Index dropped significantly around -4.58% as a weekly loss due to the recent surge in carnivorous cases crossed more than 1,000 mark for the first time. Nifty 50 and ASX 200 Indexes had a weekly loss of around 1% as followed by mixed global vital events.
Weekly market movement
Gold continued to be making new highs followed by the coronavirus pandemic and a falling U.S dollar price more than 4% for a month of July. It is the most significant monthly decline since September 2010. Oil dropped around -2.47 for the week.
The below charts show the trend in news sentiment for the week. The data continued to maintain the mixed sentiment trends for the significant Indexes globally due to diverse events. The US S&P 500 index shows a modest uptrend at the same time Nasdaq 100 showing the sharp downward trend despite the severe gain in tech stocks.
Dax 30 Index from European region shows a marginal uptrend in sentiment. On the other hand, the FTSE-MIB Index showing a steady downward trend in sentiment direction.
Most of the Indexes from APAC region became negative, followed by the neutral sentiment from the week ago. Nikkei 225 and Kospi-100 Indexes are showing the strong downtrend in news sentiment.
Sentiment Trend Chart
The following critical economic indicator and earnings reports will be the factors for determining this week market and can revert the current sentiment. The factors include construction spending, U.S Unemployment rate data on Monday, UK’s GDP Q2 data on Wednesday, China’s (YoY- July) Industrial production on Thursday, U.S retails sales report on Friday and earning news for the stocks (https://www.investing.com/earnings-calendar/).
Note: The sentiment indicator can be used as an additional overlay for your existing models to improve the performance further.
Buy & Sell Signals
The below table is showing the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models are developed with the combination of technical, fundamental, quantitative techniques and primarily the news-based sentiment score as an additional overlay.
I have tabulated the random signals from several InfoTrie’s Trading/Investment models.
The news sentiment score provides a significant improvement, significant “Alpha” compared to the traditional investment/trading models.
For more details on the analysis, accessing complete tear sheets or white paper for the models, subscription details for News Sentiment data and other consulting works, please contact us with the information provided below.
InfoTrie Financial Solutions Pte Ltd, Singapore
Sureshkumar Ramani +65 93376035
Frederic GEORJON +33 (0)6 1304 0600