Global Stocks in Mixed Direction! The Sentiment Turns Neutral!
Global stocks in mixed direction. Concerns about inflation, the speed of monetary tightening, and the geopolitical turmoil in Ukraine caused the benchmark indices in the United States to fall by approximately -1 % to -2.18 % for a weekly loss. The Nasdaq Composite, which is heavily weighted toward technology, fared the worst, ending the week down around 15 % from its recent high and still in correction territory. The midcap Russell 2000 index, on the other hand, gained more than 1 % for the week as investors weighed results against concerns about rising interest rates.
According to Fact Set, with the majority of the earnings season now behind us, the proportion of S&P 500 businesses that topped analysts’ net income projections remained at 77 % as of Friday. The release of much-anticipated inflation figures on Thursday spelled the end of the increases. In January, the government announced that inflation increased at a pace of 7.5 % per year, the highest rate since 1982, according to the government.
The stock market in Europe has risen as a result of solid corporate results. For the week, the majority of European benchmark indices gained more than one %. The German index Dax-30 did better than the S&P 500. Core and peripheral eurozone government bond yields increased as a result of the European Commission’s (EC) higher-than-expected inflation estimate and an unexpected increase in consumer prices in the United States.
The bulk of APAC benchmark indices gained more than 1% on a weekly basis. Following encouraging government announcements and the belief that the country’s regulatory crackdown cycle had reached its zenith, China’s benchmark index, the CSE 50, excelled, rising more than 3%. On the other side, the Kospi-100 and the Nifty 100 witnessed very small drops.
Underlying weekly market movement
The price of oil increased by another 1.7 % for the week. The prices are climbing to seven-year highs due to tensions between Russia and Ukraine. A rise in the price of Bitcoin has been seen for the third week in a row, with the cryptocurrency reclaiming much of the ground lost during a January sell-off. The coin is currently trading at approximately $42,600.
Global stocks in mixed direction. The overall sentiment shifts to a neutral tone with the mixed bag of news. The U.S. benchmark indices turned in an unbiased direction in sentiment direction. However, the technology index Nasdaq-100 shifted to a modest downtrend in sentiment direction.
The sentiment trend for the key European benchmark markets shifted to a neutral view. However, the French index CAC-40 show solid down-trend sentiments.
The sentiment trend for the APAC benchmark indexes is dominated by the neutral view. However, the Australian index ASX-200 slanted towards a negative trend.
The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including Industrial Production and the Leading Economic Indicator index. (https://www.fxstreet.com/economic-calendar
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.
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.
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