Global Stocks Slipped an Inch. The Sentiment Remains Mixed Mode.

Global Stocks slipped an inch about -1% to -1.5%. However,  The U.S midcap stock index Russel-2000 outperformed. Since the end of September 2020, the Russell 2000 has surged 41%. The earning season has just started. According to the fact set, the Wallstreet analysts estimated the earnings growth for Q4-2020  decline for the S&P-500 about -6.8% compared to its previous year last quarter. Refer (https://insight.factset.com/will-the-sp-500-report-year-over-year-earnings-growth-in-q4).

President-elect Joe Biden announced a $1.9 trillion fiscal-stimulus plan that aims to counter the effects of COVID-19. In addition to more money for COVID-19 testing and vaccine distribution, the proposal calls for $1,400-per-person direct payments to most U.S. households. The questions also remained about how quickly the administration could move on the plan and how much opposition would slow down the process.

The major European benchmark Indexes fell about -1.6% to -2% as the resurgence in coronavirus infections dented optimism surrounding plans for further fiscal stimulus in the U.S. European countries Switzerland, Netherlands, Germany and France continued to toughen and extend lockdowns amid increasing Covid cases and deaths. The U.K. bans entry from South America, where a new variant that appears resistant to vaccines has been detected.

The most APAC benchmark Indexes ended with the mixed movement. The Indexes Nifty-50, Nikkei-225 and Hangseng ended positively about 0.^to 2.5%. Hongkong’s Hang Seng Index outperformed. On the other side, Index CSE-50, ASX-200 and KOSPI-100 closed lower for the week about -0.1% to -2.1%.  

Weekly market movement

Underlying_2021-01-18-Global Stocks Slipped an Inch

The U.S. blacklists nine more corporations with ties to the Chinese military. Apart from Xiaomi Corporation, the more other firms blacklisted include Advanced Micro-Fabrication Equipment Inc. (AMEC), Luokong Technology Corporation (LKCO), Beijing Zhongguancun Development Investment Center, GOWIN Semiconductor Corp, Grand China Air Company (GCAC), Global Tone Communication Technology (GTCOM), China National Aviation Holding Co. Ltd. (CNAH) and Commercial Aircraft Corporation of China (COMAC).

Gold dropped about -1 % as a weekly loss. The Sentiment for the gold remains bearish for the week. Crude Fell about -1.59% as a weekly loss.

Oil producer group OPEC kept its 2021 forecast for global crude demand growth unchanged but warned uncertainties over the coronavirus pandemic’s impact to remain high. Bitcoin became highly volatile and ranging between $40k to $35k.

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. U.S. retail sales dropped in December, marking the third monthly decline in a row. Sales fell 0.7% from November’s level. The overall Global Indexes remains with the mixed in Sentiment direction. Most U.S benchmark Indexes showing the modest down to neutral trend in sentiment direction for the week. Global Stocks slipped an inch.

The Index DAX-30 turns to the neutral mode. London’s primary Index FTSE-100 and Italy’s FTSE-MIB show the strong downtrend in sentiment direction for the week. On the other hand, the French Index CAC-40 turns in to modest uptrend in sentiment direction.

The top benchmark Index from the APAC region remains mixed in sentient direction. ASX-200, NIKKEI-225 and NIFTY-50 Indexes are showing downtrend in sentiment direction. In contrast, HIS-50, SSE-50 and Kospi-100 Indexes are in bullish mode.

Sentiment Trend Chart

Sentiment Chart_2021-01-18-Global Stocks Slipped an Inch

The following critical economic data refer to https://www.fxstreet.com/economic-calendar  includes housing starts, building permits, PMI breakdowns, and existing home sales and companies reporting quarterly earnings.

Sentiment Values

Sentiment Table_2021-01-18-Global Stocks Slipped an Inch

Note: The sentiment scores applied as an additional overlay to your existing models to further improve performance.

Buy & Sell Signals

The below table shows the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models developed using technical, fundamental, quantitative techniques and the news-based sentiment score as an additional overlay.

I have tabulated the random signals from several InfoTrie’s Trading/Investment models.

Buy_Sell_2021-01-18-Global Stocks Slipped an Inch

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 below.

InfoTrie Financial Solutions Pte. Ltd.
Alternative Data, Sentiment Analysis, Financial I.T. and A.I. Consulting

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

contact@infotrie.com
Suresh Kumar Ramani +65 9337 6035
Frederic GEORJON +33 (0)6 1304 0600


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