U.S Stocks Fall Back! The Sentiment Turns Neutral!

U.S stocks fall back. Stocks in the United States have retreated for the week after a week of advances. The top benchmark indices in the United States fell by around 0.29 percent to -4.53 percent. Higher interest rate expectations weighed heavily on growth companies and the technology-heavy Nasdaq Composite, causing the implied discount on future earnings to rise to its highest level in nearly a year.

Furthermore, the U.S jobless rate dropped to 3.9 percent, while salaries increased at a 4.7 percent annual rate. The most recent yield increase is a significant increase over the previous week, when the 10-year Treasury’s closing yield was 1.51%.

The shares in European market advanced despite the worries that central banks may reduce asset purchases and raise interest rates at a faster pace to contain persistent inflation. The top European benchmark indexes closed higher for the week, about 0.4% to 1.36%. The core euro-zone bond yields climbed

In December, the euro-zone’s inflation rate increased to a new high, owing to increases in energy and food prices. Consumer prices increased 5% year over year, accelerating from the 4.9 percent rate recorded in November.

The leading APAC benchmark indices finished in a mixed bag. The Nifty-50, Hangseng, and ASX 200 indexes all ended the week with a gain of 0.12 percent to 2.64 percent. The Nifty-50 in India underperformed. The Kospi-100, Nikkei 225, and CSE-50, on the other hand, fell by roughly -0.765 to -1.65 percent on a weekly basis. The Chinese stock market has underperformed

Underlying weekly market movement

Underlying-Weekly-1-10-2022-U.S Stocks Fall Back!

On Monday, oil lost additional ground as cases of the Omicron COVID-19 type rose rapidly, putting a damper on economic activity, while losses were limited by supply problems in Kazakhstan and Libya. Gold closed lower modestly for the week

Sentiment Analysis

U.S stocks fall back. However, the overall tone of the news is mixed. The neutral outlook dominated the sentiment for the key benchmark indexes in the United States. The Russell-2000, a midcap stock index, has skewed pessimistic.

The European indexes have a neutral outlook. The current trend, on the other hand, is slanting downward. In contrast, the German Dax-30 index is in a strong upswing for the week.

For most APAC benchmark indices, the mood trend has shifted to a mixed picture. The Nikkei-225 and Kospi-100 indexes are in a robust rise, while the HSI-50 index in Hong Kong has turned negative in the mood trend. The rest settled into a neutral viewpoint.

Sentiment Trend Chart-1-10-2022-U.S Stocks Fall Back!

The following important economic indicators and earnings reports, which have the ability to alter current sentiment, may determine the market this week. Which include the PMI index and hourly earnings growth (https://www.fxstreet.com/economic-calendar)

Sentiment Values

Sentiment Values-1-10-2022-U.S Stocks Fall Back!

Note: The news sentiment data is the most useful additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

The buy/sell signals generated by InfoTrie’s proprietary Investment/Trading models are shown in the table below. These models were built utilising technical, foundational, and quantitative methodologies, with the news-based sentiment score serving as a secondary overlay.

I tallied the random signals from different Trading/Investment models at InfoTrie.

Buy Sell-1-10-2022-U.S Stocks Fall Back!

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, don’t hesitate to contact us with the information provided below.        

contact@infotrie.com

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InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


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