Global Stocks Sell-Off! The Sentiment is in a Mixed Direction!
Global stocks sell-off. The major U.S. market indexes from plummeting for the third week in a row, resulting in losses ranging from 2% to 4% amid further signs of tightening monetary policy. The Russell 1000 Growth Index lost more ground than the Russell 1000 Value Index. The NASDAQ has dropped more than 12% from its recent peak.
According to FactSet, with around 20% of the earnings season finished, the proportion of S&P 500 businesses that have outperformed analysts’ net income projections was at 79 % as of Friday. Concerns about inflation and the rate at which interest rates are being raised continued to weigh on government bond prices, driving yields to their highest levels in three and a half years. On Thursday, the 10-year US Treasury bond yield briefly reached 2.95 %.
Europe’s stocks slumped as investors worried about the continued conflict in Ukraine and rising hawkishness among central bank governors. The major European indexes declined about -0.12% to -2.5% for the week. The FTSE 100 plummeted 1.4 % on Friday, while the pound plunged to its lowest level versus the US dollar since 2020. The actions came after a government study revealed that retail sales in the United Kingdom declined by 1.4 % in March. Furthermore, consumer sentiment in the United Kingdom fell to its second-lowest monthly figure since records started nearly 50 years ago.
Core rates on Eurozone bonds have risen in lockstep with those on US Treasuries. Sell-offs 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 declined modestly for the week. Chinese markets slid over 6% as investors worried about the economic fallout from coronavirus lockdowns after officials said tough restrictions would remain in place.
Underlying market movement
Oil prices fell further on Monday, owing to continued concerns that lengthy COVID-19 lockdowns in Shanghai and expected US rate rises would crimp global economic growth and fuel consumption.
For the week, general mood is mixed. The major US benchmark indexes maintain a neutral-positive trend. The Nasdaq-100 Technology index, on the other hand, is trending downward.
For the week, the average mood trend in the European market is neutral. The FTSE-100 and CAC-40 indices both fell in value. The rest remain uncommitted.
The APAC indices SSE-50, Nikkei-225, and ASX-200 are all in a strong bearish mood for the week. The indices Kospi-100 and Nifty-50, on the other hand, indicate a steady uptrend for the week.
The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including core Housing Starts and the Market PMI 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.
InfoTrie Financial Solutions Pte Ltd, Singapore
Sureshkumar Ramani +65 93376035
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