Stocks Edged Higher Despite Coronavirus Cases

Most global stocks extended their gains followed by the historic rally despite the rise in coronavirus cases. The job reports were mixed. The unemployment rate declined to 6.7% from 6.9%, but the participation rate also fell, indicating that more people exited the labour force. Spiking coronavirus cases and monthly jobs report lifted hopes that lawmakers to reach an agreement for a new stimulus package before the end of the year. The U.S benchmark Indexes rose about 1% to 2%. Nasdaq-100 Index outperformed.

The momentum in the European market halted after last month’s strong rally. Major European indexes were mixed. Dax-30 and FSE MIB Indexes closed negatively by -0.28% and -0.78, respectively. On the other hand, London’s FTSE-100 Index outperformed and climbed about 2.87% for the week

The most APAC Indexes continuing to maintaining the gain. Nifty-50 and Kospi-100 Indexes rose above 2% for the week. However, Hongkong’s Index HSI-50 closed lower modestly. Chinese stocks posted their third straight weekly gain, aided by reliable economic data. China’s Shanghai Composite rose above 1% for the week.

Weekly market movement

Underlying_2020-12-07 - Dow hits 30 000!

Gold climbed higher, about 3.26% for the week. The longer-term, We believe that gold goes looking towards the $2000.

Crude oil prices continued to climb further out of the hole they plunged into during the spring following a collapse in demand. The cost of U.S. crude on Friday rose above $46 per barrel for the first time in nine months, owing in part to a new production agreement reached by OPEC and other oil-producing nations. Energy shares bounced back after the deal.

Sentiment Analysis

The below figures illustrates the negative mode slightly dominates the overall global sentiments trend for the week.  The News and social media sentiment for the significant U.S benchmark Indexes S&P-500 and Russel-2000 still on the positive value but the trend is moving towards the negative direction indicates market rallies likely to be paused or in negative mode.

The news sentiment of European benchmark Indexes remains mixed. Dax-30 Index is showing the strong downtrend in sentiment direction for the week. On the other hand, French Index CAC-40 turns into an optimistic view. FTSE-100 and FTSE MIB index sentiment remains neutral

The prominent APAC Indexes sentiments are in the mixed picture. Indexes ASX-200 and Nifty-50 are in a strong uptrend in sentiment direction for the week. On contrasts,  Kospi-100 and Japan’s Nikkei-225 Indexes are in negative sentiment direction for the and turns into a positive direction. New coronavirus cases in Japan increased to record levels in late November, and public opinion on the government’s response to the pandemic has faltered.

Sentiment Trend Chart

Sentiment Chart_2020-12-07 Stocks are bullish. DOW hits 30,000!

The following critical economic data refer to released includes the small business optimism index on Tuesday, inflation on Thursday, and consumer sentiment on Friday.

Sentiment Values

Sentiment Table_2020-12-07 Stocks Edged Higher Despite Coronavirus Cases

Note: The sentiment scores applied as an additional overlay to 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_2020-12-07 Stocks Edged Higher Despite Coronavirus Cases

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
Suresh Kumar Ramani +65 9337 6035
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