Global Stocks fell. U.S news sentiment turns strong negative.

Most global Indexes fell last week. The U.S S&P-500 Index closed lower fourth row in a week. Small-cap and cyclical stocks hardest hit by the news that a vaccine is further away than initially thought. The U.S Russel-2000 Index fell about -4% for the week. However, the Nasdaq-100 Index rebounded and closed higher about 1.11 %.

European Indexes fell sharply to -2,7% to -5%. A surge in coronavirus cases in Europe has also seen investors shun some European stocks on fears that economic restrictions could be reestablished. IHS Markit’s composite purchasing managers’ index (PMI) showed that the recovery in eurozone business activity lost steam in September as rising coronavirus infection rates and social distancing weakened demand in the services sector.

Most of the liquid indexes from the APAC region closed significantly lower for the week about -4% followed by the global pressure. However, The Australian ASX-200 ends positively about 1.71%.¬†Australian shares set to open higher on Monday with investors likely to cheer easing COVID-19 restrictions in the state of Victoria in the wake of slowing infections. China’s yuan currency rose to its highest level in more than a year versus the U.S. dollar as investor concerns over fresh U.S tariffs faded.

Weekly market movement

Underlying market movement Sep-28-2020

Gold Fell about -5% for the week. The recent fall in gold prices to a resurgent dollar and uncertainty over the U.S stimulus package. In the neutral mode with low volatility and declined modestly about -0.28% for the week. The U.S crude oil prices closed lower for the week around -2.5 %.

Sentiment Analysis

The below figures illustrates the news and social media trend direction for the week. The U.S market sentiment turns strong-Negative from its previous stage.

European Indexes are in mixed trend in sentiment direction. Dax-30 Index is in red. In contrast, France’s CAC-40 Index showing a strong positive focus for the week. U.K and Italy remain neutral.

The sentiment for the most APAC indexes turns neutral. However Kospi-100 and India’s Nifty 50 Indices showing strong negative feeling.

Sentiment Trend Chart

Sentiment trend Chart Sep-28-2020

The following critical economic data refer to https://www.fxstreet.com/economic-calendar released includes personal consumption, the unemployment rate, and the Consumer Confidence Index.

A monthly labour market update due out on Friday is likely to be the week’s most closely watched economic report, and it will be the final jobs report before the U.S. election. The new release will show whether September’s recovery of nearly 1.4 million new jobs extended into October.

Sentiment Trend

Sentiment values Sep-28-2020

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-28-2020

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, 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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