The U.S market declined modestly. The U.S benchmark indexes closed lower about -0.37% to -1.1%. The concerns about the continuing rise in Delta variant COVID-19 infections virus. The tech shares underperformed due to the regulatory crackdown by Chinese authorities affecting some of that country’s fastest-growing technology and education companies.
However the midcap index Russel-2000 closed higher about 0.5% as a weekly gain. The GDP growth for the second quarter is slightly better than the first quarter, but below most analysts’ expectations for about 8.0%. Source: FactSet. https://insight.factset.com/five-economic-charts-to-watch-in-2h-2020-united-states
Most European benchmark indexes closed higher modestly, about 0.07% to 0.95%. The Italian index FTSE-MIB outperformed. However the German index closed lower, about -0.8%. The early optimism by strong corporate earnings was offset by concerns about the spread of the delta variant. Euro zone bond yields declined.
The top benchmark indexes from the APAC region closed lower, about -0.02% to -5%. The Chinese index SSE-50 underperformed on the regulatory overhaul for the technology and education companies.
Weekly market movement
The Gold ended as another Flat week. The Oil price closed lower over -1% as a weekly loss.
The figures showing the news and social media sentiment trend for the week. The U.S. market declined modestly. The Overall global sentiment turns into neutral-positive. Despite the concerns about the new delta variant infections. The U.S market sentiment turns into the positive zone on Earnings season continued to exceed expectations.
Second-quarter profits at companies in the S&P 500 were expected to surge 85% as of Friday, based on companies that have reported so far and forecasts for upcoming reports, according to FactSet. Except for the U.S tech index Nasdaq-100, the top benchmark indexes turn into a positive trend in sentiment direction.
The sentiment trend for the European benchmark indexes is in mixed mode. The indexes FTSE-MIB and CAC-40 show a promising uptrend in the sentiment direction. On the other hand, the German index Dax-30 shows a strong downtrend. The London index FTSE-100 is in a neutral direction.
Most APAC benchmark indexes are dominated by the neutral mode for the week. However, the index SSE-50 shows a modest uptrend in sentiment for a week. On the other hand, the Indian index Nifty-50 turns into the strong bearish mode for the week.
Sentiment Trend Chart
The following critical economic indicator and earnings reports will be the factors for determining this week’s market and can change the current sentiment. The factors include Pending construction spending, hourly wage growth, and consumer credit. (https://www.fxstreet.com/economic-calendar)
Note: The sentiment indicator can be used as an additional overlay for your existing models to improve the performance further.
Buy & Sell Signals
The below table is showing the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models are developed with the combination of technical, fundamental, quantitative techniques and primarily 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 provided below.
InfoTrie Financial Solutions Pte Ltd, Singapore
Sureshkumar Ramani +65 93376035
Frederic GEORJON +33 (0)6 1304 0600