Global Stocks Extended The Gain. U.S Sentiment Remains Positive

Most Global Indexes climbed for the week. Major indices from U.S market rallied about 3 % to 6.5%. Small cap Index Russel-2000 outperformed with in the U.S region. The driver behind the equity-market strength was the anticipation that another stimulus package will eventually be passed.

The U.S market social media sentiments remains positive despite the uncertainty in the US election poles. President Trump’s seemingly rapid recovery following his COVID-19 diagnosis the previous week also seemed to boost sentiment. September PMI numbers show that while the global economy is continuing to recover.

The top indices from European region rose about 2% to 3% on hopes that the U.S. government would pass additional measures to stimulate the economy .  Germany’s Dax 30 Index outperformed within region. 

Most of the Index from APAC region closed higher for the week. China’s Shanghai Composite Index outperformed about 4.5%. China equities have been one of the best performing markets this year.

Weekly market movement

Underlying market movement_Oct-12-2020

Oil climbed higher significantly about 10% for the week. This Monday, Oil price slide about 3% from its previous gain due to profit cover. Oil Moves Below $40 As U.S. Producers Begin To Restart Output After Hurricane.

Sentiment Analysis

The Dow climbed Monday, on optimism over stimulus talks and an Apple-led tech rally ahead of the tech giant’s slate of new iPhones expected to be unveiled on Tuesday.

Sentiment Trend Chart

The below chart show the news and social media trend direction for the week. The U.S market sentiment remains positive trend for the week. Hope for new stimulus package and improvement in  Vaccines for COVID-19 keeps the sentiment into the positive for the U.S market. Dowjones-30 Index show the strong up trend with in region.

On contrast European Indexes remains neutral trend in sentiment direction. despite the stimulus hopes, COVID-19 cases continued to rise sharply in Spain, Italy, France, and the UK despite  targeted measures to control the disease’s spread.

The major Indexes from APAC region showing mixed in news sentiment trend. Japan’s governor affirmed that fiscal and monetary stimulus measures have been effective. Australia’s ASX 200 Index showing the positive sentiment trend for the week. On the other hand, China’s Shanghai Composite Index showing the short term Negative sentiment trend. 

Sentiment_Trend_Oct-12-2020

The following critical economic data refer to https://www.fxstreet.com/economic-calendar released includes inflation on Tuesday and retail sales and consumer sentiment on Friday.

Sentiment Trend

Sentiment_Value_Oct-12-2020

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-Oct-12-2020

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

InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


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