Global markets extended the gain With the mixed sentiment.

The global market extended the third row for the weekly gain. The U.S. The market gained modestly. Dow 30 Index outperformed within the U.S. Region. S&P 500 recorded its sixth positive week and closed to the record high since the February fall. The Nasdaq rose marginally, eclipsing its record high set the previous week. However, the market in in mixed sentiment for the week.

Apart from the added stimulus packages, The initial jobless claims fell below one million for the first time since March, better than expected corporate earnings, lower interest rates and upticks in inflation are the key factors to keep the market rally. However, the increase in Coronavirus new cases, doubtful another stimulus package may halt the current rally.

The major European Indexes continued to be a rally with a range of around 1% to 2.5 %. Despite the spikes in the Coronavirus rate in European regions (Germany, France, Spain and U.K.) sparked fears about the second wave of the pandemic, The European market rose on signs of progress in vaccine development and hopes for the further stimulus packages.

Most of the Indexes from APAC region closed higher for the week. The Indexes ASX-200 and KOSPI -100 and Hang Seng index sealed with the high momentum of above 2%. The Nikkie-225 Index is outperformed within the region with a substantial gain of around 4.3%. However, Nifty-50 India closed with the red mark of around -0.32 for the week.

Weekly market movement

Profit-taking made the gold fell sharply around -3.38 after setting its new record high and a ninth row of weekly gain. However, the gold retracted towards $2000 mark from its daily lowest point of $1874.2 in the past week.

Sentiment Analysis

The below charts show the trend in news sentiment for the week. The overall global news sentiment turned to neutral-uptrend from its neutral-downtrend past week.

The S&P 500 and Dow Indexes from U.S region showing the modest uptrend in sentiment for the week. Nasdaq and Russel 2000 Indexes are in Neutral view. The completion of big tech shared earnings for the second quarter makes the Nasdaq sentiment became Neutral.

The European Indexes Dax-30 and FTSE-Mib are showing an uptrend in sentiment. At the same time, CAC-40 and FTSE-100 remain neutral in a sense for the week.

The major Indices in the APAC region are continuing in mixed sentiment trend.  Japan and Korea Indexes are showing the uptrend in the news sentiment. On the other hand, The Indexes ASX-200, KOSPI-100 Hong Kong and China Indexes show negative sentiment trend. In contrast, 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 building permits on Tuesday, FED reserves July meeting minutes on Wednesday and the leading Index on Thursday and the several corporate earnings reports. (https://www.investing.com/earnings-calendar/).

Sentiment Trend

Japanese listed companies expected their profit declines to 36% in fiscal 2020. The market will rally If the outcomes are better than the expectation and wise versa.

Note: The sentiment indicators can be applied 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.

contact@infotrie.com

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InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


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