Global Markets witnessed Mixed Trend with Mixed Sentiments.

The global markets closed with a mixed trend for the week.  The major U.S stock indexes declined for the second straight week. The Indices fell about -1.5% to -4%. The U.S Tech shares are continuing to under selling pressure. The Nasdaq Index about 10 % below from its all-time high. 

The news sentiment score trend remains mixed in trend among regions. The suspicious new stimulus packages and the slowdown in the labor market may turn the sentiment into the negative trend for the coming weeks for the U.S market.

The European Indexes surged about 1.5% to 4% for the week. The president of the European Central Bank expressed optimism for the continent’s economic recovery. This is citing positive trends for manufacturing and services. However, there are nor concrete plans for the new stimulus keeps the market sentiment in mixed mode.

The APAC indices closed with a mixed trend for the week.  Kospi-100 Index outperformed within the APAC region.  Nifty-50 and Nikkie-225 Index finished higher, around 1%. On the other hand, ASX 200 and Shanghai composite Indexes closed with the red zone about -1% to -2.8%.

Weekly market movement

Underlying_movement_Sep-14-2020

Gold remained in the neutral mode and ended flat for the week. Domestic oil prices sank below USD 40 per barrel for the first time since July, in part because of Saudi Arabia cutting oil prices for some customers.

Sentiment Analysis

The below charts show the trend in the news and social media sentiment for the week. The U.S market sentiment is continuing to be a neutral view. However, the opinion for the Russel-200 Index showing the mild uptrend in the sentiment direction.

The News headline that AstraZeneca was pausing the trials of its leading coronavirus vaccine candidate after a participant developed a severe neurological disorder may have also weighed on sentiment. However, the Inflation remains below the U.S. Federal Reserve’s 2.0% target. But its rising, despite high unemployment. The Department of Labor on Friday reported that consumer prices rose 0.4% in August compared with July.

Dax 30 and FTSE-100 Indexes are showing strong negative sentiment from the European region. The United Kingdom’s process of exits itself from the European Union continues to run into obstacles.

The news sentiment in the APAC region is continuing to be in a mixed trend. The Hang Seng and Shanghai Indexes are showing the modest uptrend. In contrast, Japan’s gross domestic product (GDP) growth revised to an annualized pace of -28.1% in the first fiscal quarter ended June 30, 2020, shift Japan’s Nikkie-225 sentiment into a down trend from its previous positive state.

Sentiment Trend Chart

Sentiment Trend Chart_Sep-14-2020

The following critical economic data refer https://www.fxstreet.com/economic-calendar released. This includes industrial production on Tuesday, retail sales along with the Federal Reserve interest rate decision on Wednesday, and consumer sentiment on Friday.

Sentiment Trend

Sentiment Scores_Sep-14-2020

Note: The sentiment scores applicable 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.

Buy, Sell Signals_Sep-14-2020

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 and 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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