Global Stocks Rallied. The Sentiment Trend Remains Mixed.

Global stocks rallied and booked their largest weekly gain. The U.S benchmark Indices climbed higher about 3.5% 7.5%, which is more than making up for the previous week’s losses. Midcap stocks outperformed than the large-caps. The most global Indexes sets a historical high.

The market is driven by the Fiscal-stimulus expectations and progress on vaccine distribution. The U.S January jobs report was disappointed. However, It supports the market rally because the weak job report could increase the stimulus package’s pressure. Google’s Alphabet company shares rose significantly due to the company’s earnings report is better than expected.     

The shares in the European market rose significantly on optimistic hopes on fast economic recovery. The European benchmark Indexes closed higher about 1% to 7%. Italy’s FTSEMIB Index outperformed because Italy turned to former ECB Chief Mario Draghi to form a new government.

The most APAC benchmark Indexes closed higher for the week. The Index Nifty-50 rallied about 9.46% as Investors optimistic on Union budget 2021. Gains in banking stocks drove The market rally.  The Indexes ASX-200, Kospi-100 and Japan’s Nikkei-225 surged for the week above 4%.  

Weekly market movement

Underlying_2021-02-08-Global Stocks Rallied

Gold closed lower about -2% as a weekly loss. The Sentiment for the gold remains bullish for this week. Crude oil traded to the highest levels in more than a year, logging an almost 10% gain for the week.  

The price of bitcoin (BTC) rose above $40,000 Saturday as the leading cryptocurrency has nearly regained all its losses suffered since reaching an all-time high in early January (https://www.coindesk.com/bitcoin-back-above-40k-as-institutions-lead-the-way).

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. The sentiment trend remains mixed for the global market. The Sentiment sentiment trend for the U.S market turns neutral mode. However, the Index S&P500 showing the modest uptrend in sentiment direction.

The Sentiment trend for the European benchmark Indexes is in mixed mode. The German Index DAX-30 is showing the uptrend view. On the other hand, the Indexes CAC-40 and FTSEMIB turn in to modest downtrend in sentiment direction for the week.  The London Index FTSE-100 remain in neutral mode.

There is a mixed sentiment direction among the major APAC benchmark Indexes. The Indexes ASX-200 and Kospi-100 are in neutral mode.  On the other hand, Indexes Nikkei-225, SSE-50 and HSI-50 turns in to downtrend in sentiment direction. India’s key Index Nifty-50 turns in to bullish mode.  

Sentiment Trend Chart

Sentiment Chart_2021-02-08-Global Stocks Rallied

The following critical economic data refer to https://www.fxstreet.com/economic-calendar  includes the small-business optimism report on Tuesday, inflation on Wednesday, and consumer confidence on Friday.

Sentiment Values

Sentiment Table_2021-02-08-Global Stocks Rallied

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_2021-02-08-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 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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