Global Stocks Closed Lower. The U.S Sentiments Turns Negative!

Global stocks closed lower for the week on fears of inflation and the steep rise in longer-term Treasury interest rates. Bond volatility spiked to the highest level since April of last year. The major U.S benchmark Indexes closed with the red mark for the second week in a row, about –1.78% to -4.92. The Tech shares suffered their worst drop since October. The U.S value stocks outperformed growth stocks by a wide margin for the second week in a row.

The European shares fell along with the global market.  The top benchmark indexes fell about -1.22% to -2.12% as a weekly loss. The currency GBP/USD rose to its highest level of 1.42 in almost three years. Most European countries are planning to ease the lockdown restrictions gradually.

The APAC benchmark Indexes tumbles for the week, about -1.77% to -5.43% in tandem with the global sell-off. The Japan Index Nikkei-225 fell about -3.5% last Thursday and marked a most extensive daily loss in the previous three quarters. However, Japan’s business sentiment improves for the first time since mid-2019.

Weekly market movement

Underlying_2021-03-01-Global Stocks Closed Lower

Gold closed lower about -2.73% as a weekly loss. The Sentiment for gold remains bearish for the week. The price of U.S. crude oil climbed and ending just below $62 per barrel.

Bitcoin turns into a risky asset once again. Bitcoin close to registering its most significant weekly dip in 2021, and at press time, BTC has dropped 21% over the past one week. (https://coinmarketcap.com/currencies/bitcoin/news/)

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. The overall U.S sentiment trend turns in to Negative for the week. Despite the most significant weekly gain in the underlying market, The sentiment direction for the Nasdaq-100 Index is in neutral mode.

The Sentiment trend for the European  Indexes is in mixed mode. The Indexes Dax-30 and FTSE-100 are showing the downtrend in sentiment direction for the week. However, the French Index CAC-40 shows a strong bullish sentiment view.  The opinion about FTSE-MIB remains neutral for the week.

The APAC indexes  ASX-200, Nikkei-225 and HSI-50 are showing a modest downtrend in sentiment direction. China’s CSE-50 is in modest bullishness for the week. The rest of the benchmark Indices remains neutral.

Sentiment Trend Chart

Sentiment Chart_2021-03-01-Global Stocks Closed Lower

The following critical economic data refer to https://www.fxstreet.com/economic-calendar  include the PMI composite, jobs data, and consumer credit levels. The U.S initial jobless claims expected to rise to 775K from 730K.

Sentiment Values

Sentiment Table_2021-03-01-Global Stocks Closed Lower

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_2021-03-01-Global Stocks Closed Lower

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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