Despite the mixed economic data, global markets edged higher and back to track on earnings reports. For Q1 2021 (with 95% of the companies in the S&P 500 reporting actual results), 86% of S&P 500 companies have reported a positive EPS surprise, and 76% of S&P 500 companies have reported a positive revenue surprise. If 86% is the final percentage, it will mark the highest percentage of S&P 500 companies reporting a positive EPS surprise since FactSet began tracking this metric in 2008. (Source: https://insight.factset.com/).

S&P_EPS_2021-05-10-Global Markets Edged Higher

The top U.S benchmark Indexes closed higher, about 0.94% to 2.39%. The midcap index Russel-2000 outperformed, and the large-cap growth index beat its value counterpart by a wide margin. Facebook and Google parent Alphabet helped the U.S tech index Nasdaq-100 closed above 2%.

The U.S economic data were mixed. The jobless claims fell more than consensus expectations, to a new pandemic-era low of 406,000, but regional manufacturing gauges came lower than anticipated.

The critical European benchmark indexes closed higher modestly about 0.06% to 1.53 % on easy monetary policy and massive U.S. fiscal spending plan. The French Index CAC-40 outperformed. The London Index FTSE 100 Index ended as flat, in part reflecting the GBP appreciation versus the U.S. dollar.

Most APAC market shares advances than the performances of the global stock. The APAC benchmark indexes show a solid weekly gain of about 1% to 3.5%. China’s Shanghai composite index outperformed. Tourism-related names and other stocks leveraged to an economic reopening rose after China passed a milestone of over 500 million COVID-19 vaccinations. Japan’s index Nikkei-225 closed higher by nearly 3%, signs that Japan was accelerating its COVID-19 vaccine rollout were supportive of sentiment.

Weekly market movement

Underlying_2021-05-31-Global Markets Edged Higher

Gold edged higher, about 1%, as a weekly gain. The U.S Oil rose above 4% as a weekly gain. Bitcoin has crashed by around 44% from its all-time high of $64,899 and currently ranging from 30K USD to 40k USD. Refer to (https://coinmarketcap.com/currencies/bitcoin/news/).                                                                       

Sentiment Analysis

The below figures shows the news and social media sentiment trend for the week. Global markets edged higher with mixed sentiments. The sentiment for the U.S benchmark indexes shows a mixed signal.

The Industrial Dow index and midcap index Russel-2000 shows a definite downtrend in the sentiment direction. In contrasts, the Tech index Nasdaq-100 shows a bullish sentiment view. The index S&P-500 is in neutral mode.

The neutral and downtrend mode dominated the sentiment trend for the European benchmark Indexes.  The german index Dax-30 and the French Index CAC-40 show a modest downtrend in sentiment direction for the week. The rest remains neutral.

The bullish sentiment trend dominated the primary APAC benchmark indexes. Japan’s Nikkei-225 and India’s Nifty-50 remain neutral for the week.

Sentiment Trend Chart

Sentiment Chart_2021-05-31-Global Markets Edged Higher

The following critical economic data refer to https://www.fxstreet.com/economic-calendar, including Markit PMI index, productivity growth, and Unit Labor Costs.

Sentiment Values

Sentiment Table_2021-05-31-Global Markets Edged Higher

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_2021-05-31-Global Markets Edged Higher

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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