Global Equities Extended Their Rally

Global equities extended their rally. Most global equities extended their rally for the second row of the week. The U.S benchmark Index S&P-500 closed at a new record high following news of progress in developing a COVID-19 vaccine. Russel-2000, a small-cap Index posted a substantial weekly gain of about  6%. On the contrast, the Nasdaq-100 Index ended with the negative mark about -0.55% as a weekly loss.

The Equities in European market rallied with the global market. The top benchmark indexes continued their weekly gain and climbed within a range of 5% to 8.45 %. The French benchmark Index CAC-40 outperformed within the European market. The ECB had raised expectations at its October meeting that policymakers would inject more stimulus into the economy to prevent a double-dip recession.

Despite the resurgence of the new daily Covid-19 cases, the optimism about the vaccine development is the critical news and prominent force for driving the financial market at this stage.

The primary benchmark Indexes from APAC region posted their weekly gain of about 1.5% to 4.5%. Japan’s Nikkei-225 Index outperformed within the APAC region.  However, China’s  Shanghai Composite Index ended with a modest weekly loss.

Weekly market movement

Underlying_2020-11-16 - Global Equities extended their rally

Gold erased its previous week’s gain and booked a weekly loss of about -3.4 %. However, the volatility in the equity market could set the gold price towards the $2,000 target shortly. 

The Oil price jumped nearly 7%, moving back above $40 per barrel. However, the price expected to drop amid concern that the recent spike in coronavirus cases could trigger further travel restrictions, depressing demand for fuel.

Sentiment Analysis

The below figures illustrates the news and social media trend direction for the week. Despite that global equities extended their rally, the U.S market turns neutral in sentiment trend for the week. The  Russel-2000 Index turns modest negative in sentiment direction.

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 turns negative sentiment trend for the week. The rest remains neutral.

The sentiment trend for the benchmark Indexes from the APAC region is in mixed view. The ASX-200, HSI-50 Indexes reversed its previous week sentiment trend direction and turns positive for this week. On the other side, Nikkei-225 and Kospi-100 Indexes turns negative in sentiment direction. Nifty-50 Index is showing a neutral mode.

Sentiment Trend Chart

Sentiment Chart_2020-11-16 - Global Equities extended their rally

The following critical economic data refer to released includes retail sales and industrial production on Tuesday, building permits on Wednesday, and the leading Index on Friday.

Sentiment Trend

Sentiment Table_2020-11-16 - Global Equities extended their rally

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_2020-11-16 - Global Equities extended their rally

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

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