Global Shares Fell! Sentiments are still a bit jumbled!
Global shares fell. The major U.S. benchmark indices ended the week with weekly declines ranging from -0.28% to -4.68%. Small-cap and technology stocks lagged the overall market in the second quarter. However, there were some substantial advances in the consumer goods and healthcare industries. However, Elon Musk’s 9.2 % ownership in Twitter prompted a 27.0 % surge in the company’s stock price on Monday.
Expectations for the next earnings season are modest compared to prior quarters, as major banks begin reporting first-quarter results this week. FactSet polled analysts on Friday, and they predicted that S&P 500 businesses would report profit gains of 4.5% on average over the same time a year earlier.
Most European indexes declined about -1% to -2%% for the week. However, The London index FTSE 100, closed with solid weekly gains of about 1.75% despite concerns about central bank tightening, inflation, and Russia’s invasion of Ukraine.
Core rates on Eurozone bonds have risen in lockstep with those on US Treasuries. Selloffs in core bonds were triggered by the introduction of fresh sanctions against Russia and anticipation that the US Federal Reserve would tighten monetary policy forcefully
Most APAC benchmark indexes dropped modestly for the week. However, the Indian Index Nifty-50 closed higher for the week. The Japan index Nikkei-225 underperformed. The factor includes a further easing of border restrictions that failed to offset the adverse impact on the sentiment of a hawkish U.S. Federal Reserve and the negative repercussions, particularly inflationary pressures, of the war between Russia and Ukraine.
The Chinese market dropped nearly -1% as an expectation of a swift US Federal Reserve monetary tightening reduced risk appetite on Chinese markets, which were already under pressure due to Shanghai’s coronavirus shutdown.
Underlying market movement
After falling below $100 a barrel on Tuesday, crude oil prices plummeted to about $98 this week, marking the second week in a row that they have done so. There was no sign of a significant drop in pricing despite the recent decline.
The general mood has been skewed for the second week in a row. However, the major U.S. benchmark indices’ attitude has turned from a negative to a neutral-positive trend.
The European indices, on the other hand, showed a movement in mood in a neutral to negative direction. FTSE-MIB and the Dax-30 both exhibit a clear downward trend. Those who follow remain apolitical
Most APAC benchmark indices were dominated by a neutral sense of mood. Chinese index CSE-50, on the other hand, shows a sharp downward trend for the week.
The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including core inflation and earnings estimation. (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.
InfoTrie Financial Solutions Pte Ltd, Singapore
Sureshkumar Ramani +65 93376035
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