Global stocks performed substantial gain.
The global stocks performed substantial gain for the week. The liquid indexes from the U.S market extended the previous week’s gain and closed higher around 2.5% to 5.5%. The U.S midcap stocks outperformed on better than expected earnings report and improved new coronavirus cases in the states. The U.S economy added 1.76 million jobs in July. Beating estimates also supports for the momentum in the market.
The major European Indexes rose with a significant range of around 2.5%. The ECB committed to providing the monetary stimulus needed to support the eurozone economy will be the key for a market rally.
Many of the liquid indexed from APAC region shows positive momentum for the week. However, Hong Kong Index closed lower around -0.26%. Kospi-100 Index outperformed and gained a strong rally of around 4.55%. The Nikkie-225 Index edged higher around 2.68%. Nifty-50 and ASX-200 Indexes closed higher with a decent momentum of about 1.3% for the week.
China Index rallied on data lifted confidence in economic recovery despite the Trump administration tightened restrictions on Chinese social media applications like TikTok, WeChat and many.
Weekly market movement
Gold sets the new record high of $2078 and performed the weekly gain of around 2.81. Gold will remain above $2000 mark on uncertainty in the robust economic recovery. Oil gained about 0.38% for the week.
The below charts show the trend in news sentiment for the week. Despite the decent momentum in the underlying market, most of the liquid Index news sentiments showing between neutral to downtrends for the U.S region.
The potential no deal for the further stimulus package for the economic growth and intensification in US-China tensions keeps the sentiment downwards.
Dax 30 Index from European region shows a strong downtrend in sentiment followed by the neutral view for the rest.
The major Indexes from APAC region shows mixed in sentiment trend. Hong Kong and China Indexes shows negative sentiment trend. On the other hand, Kospi-100 and Nifty-50 Indexes are in a positive direction.
Sentiment Trend Chart
The following critical economic indicator and earnings reports will be the deciding factors for the future market direction for the week. The factors include Inflation data on Wednesday, retails sales and consumer sentiment 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