FED, drag the market lower. The U.S benchmark indexes declined about -0.28% to -4.08% on the recent FED meeting deliver a hawkish surprise, signalling earlier tapering and rate hikes. The U.S midcap index Russel-2000 underperformed. The cyclical stocks, those most reliant on economic growth, drag the Dow index about -3.45%. However, The Tech index Nasdaq-100 less reacted to the FED comment and closed modestly lower, about -0.28% as a weekly loss.
The U.S. dollar index shows up the most considerable weekly momentum of about 1.83 % since sep-2020. The Fed announcement lifted yields of government bonds. U.S. retail sales fell 1.3% in May, more than most economists had expected. It is the first decline in 3 months. Source : U.S. Census Bureau.
Shares in Europe fell after the U.S. Fed signalled that it would increase rates earlier than previously expected. As a result, the European benchmark indexes declined about -0.48% to -1.94%. The French index CAC-40 fell modestly. France ended the nighttime curfew that was in place since October.
Most benchmark indexes from the APAC shows mixed directions. For example, the indexes Hangseng, Nifty-50 and China’s Shanghai Composite index declined about -0.31% to -1.8%. On the other hand, the Indexes ASX-200, Kospi-100 and Nikkei-225 closed higher for the week.
Weekly market movement
The rising U.S dollar value impacts the Gold direction into the bearish mode of about -5.88%. It is the largest decline since Apr-2020. U.S. crude oil prices rose for the fourth week in a row, climbing to nearly $72 per barrel, the highest level since October 2018. Bitcoin is ranging around 35K USD with an unclear direction. (https://coinmarketcap.com/currencies/bitcoin/news/).
The below figure shows the news and social media sentiment trend for the week. The global market sentiment turns into a mixed direction. The U.S benchmark indexes S&P-500 and Dow-30 turn into the bearish trend for the week. The tech index Nasdaq-100 turns in the upwards direction. The midcap index Russel-2000 approaches the neutral mode.
The European indexes Dax-30 and CAC-40 turn into the negative trend in sentiment direction. The rest from the European zone remains neutral.
The APAC indexes SSE-50, Kospi-100 and Nifty-50, turn into the bullish view in sentiment direction. On the other hand, the index HSI-50 showing a negative sentiment trend. The rest of the indexes, ASX-200 and Nikkei-225, remains neutral.
Sentiment Trend Chart
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.
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
Suresh Kumar Ramani +65 9337 6035
Frederic GEORJON +33 (0)6 1304 0600