Stocks Declined Modestly
Global stocks from major indices declined modestly. However, Nifty50 Index (India) outperformed and closed higher around 2.68 %. The U.S major Indices declined within the range of -0.28 % to -1.33% due to sharp rise in the new coronavirus cases and U.S-China tensions, despite the fact that the key positive events like U.S housing market are posting monthly growth after falling sharply due to the pandemic, Existing sales jumped 21% in June, compared with the previous month and second-quarter earnings are coming in a bit better than projected.
The positive trend from European Indexes halted and declined sharply between -0.63% to -2.65% although the European Union leaders agreed on continuous progress on a landmark stimulus package to boost the economic activity.
The major Indexes from APAC regions maintain consistency in mixed directions. The improvement in the economic data will be likely to slow down as new Covid-19 cases rise sharply.
Despite the economic slowdown, the recent supply cut helps to keep the Brent Oil level above 40 USD per barrel and gained 0.46 % as a weekly change. Gold closed higher with a significant gain of around 4.83% due to uncertainty in the equity market.
The below charts illustrate the sentiment trend for the past one week. The data maintains the mixed news sentiment trends for the major Indexes globally. The US indexes are showing a continuous downtrend in sentiment. However, the Nasdaq -100 Index represents a mild uptrend in news sentiment.
The Index FTSE-MIB became Neutral whereas rest of the Indexes from European region shows modest downtrend in news sentiment direction.
Most of the Indexes from APAC region became neutral due to the uncertainty and slowed in the economic rebound. However, Nikkei 225 and Hang Seng Indices shows the modest uptrend in news sentiment direction.
The GDP initial report for U.S second quarter on Thursday is the key economic release for this week. Economist estimates the GDP shrank by 5%, the worst since 2008. The upcoming earning reports announcement from the S&P 500 companies would be the deciding factors for the coming week.
Note: The sentiment indicator can be used 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.
The news sentiment score provides a significant improvement, significant “Alpha” compared to the traditional investment/trading models.
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