Global Markets Declined with the Mixed Sentiment

Global markets suffered their worst weekly declines since March. The key news is the new record of daily coronavirus cases and the uncertainty for the new stimulus package. The major benchmark for the U.S region marked as a weekly loss of about -4.5 to -6.%. The Dow-30 Index underperformed within a region. The news sentiment remains mixed for the week. 

The Key European Benchmark Indexes extended its decline. The reaction is after the European Central Bank paved the way for a package of fresh easing in December to deal with a worsening economic outlook followed by the resurgence of Covid-19.

The major Indexes booked a worst weekly decline of about -4.5% to -8.6 %. Germany’s Dax 30 Index is underperformed within the European region. 

The APAC indexes also booked weekly losses followed by global pressure. However, the impact is not much as comparatively. The liquid APAC benchmark indexes fell about -1.6% to -3.97% for the week. Kospi-100 Index underperformed within the APAC region. 

The People’s Bank of China PBOC move to neutralize the CCF was interpreted as allowing the renminbi, which is tightly managed by the central bank, to become more market-driven.

Weekly market movement

Underlying_Nov-2-2020

Oil booked a largest decline of more than -10% for the week. The oil market is expected to be further fall and will be around $30 level by this quarter. Gold booked a weekly loss of about -1.33% for the week.

Sentiment Analysis

The below chart illustrates the news sentiment trend for the week. The U.S market sentiment remains neutral for the week. The U.S midcap index Russel 2000 turns modest negative in sentiment trend. The stocks AAPL, MSFT, FB, ZNGA, NVDA were the most searched for the U.S market.

All the major European benchmarks extended its neutral sentiment trend for the week. However, France’s CAC 40 index turns modest positive in sentiment direction. 

The major Indexes from APAC region are mixed in sentiment trend.  Nifty 50 and China’s Shanghai Composite Indexed are in negative sentiment trend.  On contrast, KOSPI 100 and Japan’s Nikkei 225 are in positive sentiment direction. The rests remains neutral. The quarterly earnings reports released late Thursday seemed to disappoint investors and sparked a sell-off at the end of the week but not much to concerned. 

Sentiment Trend Chart

Sentiment_Trend_Nov-2-2020

The following critical economic data refer to https://www.fxstreet.com/economic-calendar released includes the unemployment rate, the Fed’s upper bound key interest rate, and various PMI series.

Sentiment Trend

Sentiment_Value_Nov-2-2020

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-Nov-2-2020

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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