Stocks Closed Higher. New Stimulus Hope? U.S News Sentiments Turns Positive.

Most global Indexes closed higher more than 1.5 % for the week, snapping a string of four consecutive weekly declines on hopes of the new stimulus packages. Russel-2000 Index outperformed about 4.62 %.

The U.S. economy added 661,000 jobs in September. The latest monthly employment report provided further evidence of a slowdown in the pace of the economic recovery and the labour participation rate. But the unemployment rate came in better than expected at 7.9%. News that President Trump and his wife had tested positive for COVID-19 eroded some of the market’s gains.

European liquid Indexes finished higher about 1 % to 2%. Shares in Europe rebounded as investors snapped up beaten-down stocks, especially in the financial sector. European countries announced more targeted actions to curb the resurgence of coronavirus cases.  

The liquid Indexes from APAC regions closed with a mixed trend for the week. Nifty-50 outperformed within the APAC region and closed above 3.32 %. In contrast, the Australian ASX-200 index booked a weekly loss of about -2.91 %.

Weekly market movement

Underlying market movement Oct-05-2020

Gold rose about 2.21% for the week. A recent modest run-up in crude oil prices stalled, as U.S. crude fell nearly 8% for the week, trading at around $37 per barrel on Friday. Soft demand for transportation fuels is one of the critical factors that has recently weighed on broader oil consumption, putting pressure on prices.

Sentiment Analysis

The below figures illustrates the news and social media trend direction for the week. The U.S market sentiment reversed to positive trend for the week from its previous stage.

European Indexes are in neutral trend in sentiment direction. However, the French Index CAC-40 turns negative for the week.

The sentiment for the most APAC indexes remains neutral. However, the Nifty-50 Index is showing a positive sentiment trend. In contrast, Hangeseng Index turns negative in sentiment direction.

Sentiment Trend Chart

Sentiment Trend Oct-05-2020

The following critical economic data refer to https://www.fxstreet.com/economic-calendar released includes the ISM services index on Monday, JOLTS job openings on Tuesday, and the September Fed meeting minutes on Wednesday.

On the economic front, China’s purchasing managers’ index (PMI) readings for September underscored the country’s strong recovery after being the first to tame the coronavirus.

Sentiment Trend

Sentiment Values Oct-05-2020

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.

BuySell Signals Oct-05-2020

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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