Global Stocks Rallied But Sentiment Remains Mixed

Global Stocks Rallied. They logged their largest weekly gain since early April. Investors began to anticipate a Goldilocks scenario of additional fiscal stimulus, but more limited tax increases than under a “blue wave” Democratic sweep. The U.S liquid Indexes climbed about 5 to 8%. But the Sentiment remains mixed for the week.

With the second-busiest week of the quarter for earnings releases from S&P 500 companies, broad macro Sentiment about politics and the economy seemed to drive the market. The earnings result of many companies beat expectations. However, it will be the sixth time in the past seven quarters for which earnings have declined compared with the same period a year earlier.

Also, COVID-19, the disease caused by the coronavirus, has surged in many parts of the US, with more than 100,000 new daily cases reported nationwide for the first time and hospitalizations rising.

The shares in Europe market rallied on the sentiment from the U.S. Market, strong quarterly earnings reported by European corporations and the additional stimulus measures announced in the U.K. The major European Indices climbed about 4.5% to 7%. The Italian Index FTSE-MIB outperformed within European key benchmark Indexes.

The primary benchmark Indexes from APAC region posted their best weekly gain of more than 5%, followed by the global trend. Kospi-100 outperformed. However, China’s Shanghai composite Index was not shining much.  

Weekly market movement

Underlying_2020-11-09 - Global Stocks Rallied

Gold rose about 3.8 % for the week. The Gold prices could take off as early as Monday, building toward the $2,000 target. Oil posted a descent weekly gain about 3.7% and expected to move towards the target of U.S. $40 this week.

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. The U.S market turns neutral-positive trend for the week. The S&P-500 and Russel-2000 Indexes are sowing the positive outlook. On the other hand, Nasdaq-100 and Dow-30 Indexes are in neutral mode.

The government’s October employment report, released on Friday, showed that the economy added a better-than-expected 638,000 jobs last month, driving the unemployment rate down to 6.9% from 7.9% in September.

FTSE-100 AND FTSE-MIB Indices from European market showing positive sentiment trend for the week. The rest remains neutral.

The sentiment trend for the top benchmark Indexes from the APAC region is in mixed view. The Indexes ASX-200, HSI-50 and Kospi-100 are in Negative sentiment trend for the week. However, the Nifty-50 Index is showing a positive sentiment trend for the week.

Sentiment Trend Chart

Sentiment Chart_2020-11-09 - Global Stocks Rallied

The following critical economic data refer to released includes the Unemployment Rate, the Fed’s upper bound key interest rate, and various PMI series.

Sentiment Trend

Sentiment Table_2020-11-09 - Global Stocks Rallied

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_2020-11-09 - Global Stocks Rallied

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.

InfoTrie Alternative Data

InfoTrie Financial Solutions Pte. Ltd.
Alternative Data, Sentiment Analysis, Financial IT and AI Consulting

Read our previous blog posts. Want to access our data? Try our API or access our FinSentS platform
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