Stocks Plummeted! The Negative Tendency Dominates Sentiments!

U.S

Stocks plummeted. The U.S. benchmark indices fell between 1% and 3% over the course of the week as investors kept an eye on the Ukraine conflict and whether or not the United States would punish Russia for invading Ukraine.

An index called the Nasdaq-100 technology index didn’t do as well as it should have. It went down almost 3%. In terms of performance, the energy sector did better than the rest of the economy. On Thursday, international oil prices reached almost USD 120 per barrel before dropping a little as rumours spread about a possible Iran nuclear deal. People who work for businesses in the United States added a total of 678,000 jobs in February, which was the largest monthly gain of jobs in seven months and above the expectations of most experts. As a result, the unemployment rate has dropped to 3.8%, which is the lowest level since the pandemic began.

Europe

People in Europe were worried about what might happen after Russia invaded Ukraine with military force, so the markets there fell. It says that most European benchmarks fell between 6% and 10% in just one week because of bad weather and other factors. The FTSE-MIB index of the Italian stock market didn’t do well. European Central Bank (ECB) officials seemed to be lowering their rhetoric about monetary policy, which made it look like they were. Greek and Portuguese central bank governors have said recently that a conflict between Russia and Ukraine could put more pressure on energy markets, which could lead to higher prices, less trade, and slower economic growth. This would also hurt household and business confidence because it would make it hard for people and businesses to trust each other.

APAC

During the Ukraine conflict and rising global oil prices, most APAC markets closed lower for the week. This was followed by pressure from other markets around the world. In one week, the HangSeng 50, the Nifty 50, and the Nikkei 225 all lost more than 3% in value.

New sanctions against Russia have been put in place by the Japanese government, which has worked with other countries in the West to make their moves work together. All seven Russian banks that use SWIFT, an international payment system, were banned from using it. The assets of Russian billionaires were frozen as well. Japan will also put export restrictions on semiconductors and other technology that it sends to Russia.

Underlying weekly market movement

Underlying-Weekly-3-7-2022-Stocks Plummeted

The price of US crude oil soared beyond the $100-per-barrel mark on Thursday, reaching as high as $116—the highest amount since 2011. Oil was trading over $115 per barrel on Friday, up nearly 25% for the week.

Sentiment Analysis

Stocks plummeted. Overall attitude has shifted to the negative for the week. In terms of sentiment, the top U.S. benchmark indexes remain pessimistic.

Despite the greatest weekly decrease in the previous week, the Italian index FTSE-MIB has turned neutral in terms of mood. For the week, the sentiment trend for the remaining European benchmark indexes is dominated by a steady downtrend.

Most APAC benchmark indexes are in a solid downtrend in sentiments. However, the Chinese index SSE-50 turns into positive territory.

Sentiment Trend Chart-3-7-2022-Stocks Plummeted

The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including inflation data and the Michigan Sentiment gauge. (https://www.fxstreet.com/economic-calendar)

Sentiment Values

Sentiment Values-3-7-2022-Stocks Plummeted

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-3-7-2022-Stocks Plummeted

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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