The Direction of the Global Indices is Unsure! The Emotions Remain Mixed!

U.S

The direction of the global indices is unsure. Except for Russel-2000, the other major U.S indexes declined modestly. Higher interest rate forecasts weighed on the information technology sector, but the traditionally conservative consumer goods and utility sectors outperformed. The three major US indexes, on the other hand, had largely recovered the losses sustained since the start of Russia’s invasion of Ukraine.

Europe

Most European indexes closed higher by about 0.2% to 1.82% for the week. The Italian index FTSE-MIB outperformed.  However, the market is projected to be bumpy in the coming week due to concerns over the macroeconomic outlook in the face of high inflation and Russia’s continued invasion of Ukraine.

According to preliminary estimates, the eurozone’s annual inflation rate jumped to a record 7.5 % in March, up from 5.9 % in February. The increase was mostly driven by an increase in energy prices. In February, the jobless rate fell to a historic low of 6.8 %, as the economy continued to recover following the lifting of Covid lockdowns.

APAC

Most APAC benchmark indexes closed over 1 % as a weekly gain. However, the Japan index Nikkei-225 dropped over -1.2% as a weekly loss of Growing scepticism about Russia-Ukraine peace talks and concerns about global inflation and the impact of interest rate hikes, impacted risk appetite.

Underlying market movement

Underlying-Weekly-4-4-2022-The Direction of the Global Indices is Unsure

On Friday, the price of a barrel of US crude oil fell below $100, marking a roughly 13% weekly decrease. President Biden’s declaration on Thursday that the United States would release up to 180 million barrels of oil from a strategic reserve over the next six months was one cause of oil’s drop from a recent high of approximately $130.

Sentiment Analysis

The direction of the global indices is unsure. Overall sentiment remains in a mixed order for a week. However, the sentiment for the significant U.S benchmark indexes has shifted to a week’s negative trend.

The neutral mood trend dominated the sentiment trend for the top European benchmark markets. However, the sentiment trend for the German index Dax-30 shows a solid uptrend for the week.

The sentiment for Most APAC benchmark indexes remains an unbiased view. However, the Chinese index CSE-50 Shows a solid uptrend for the week. On the other hand, the Korean index Kospi-100 is in a bearish outlook in sentiment direction for the week.

Sentiment Trend

Sentiment Trend Chart-4-4-2022-The Direction of the Global Indices is Unsure

The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including consumer credit and Factory Orders. (https://www.fxstreet.com/economic-calendar)

Sentiment Score

Sentiment Values-4-4-2022-The Direction of the Global Indices is Unsure

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-4-4-2022-The Direction of the Global Indices is Unsure

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


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