The Stock Market Takes a Beating! The Mood Remains Uncertain

US

The stock market takes a beating. The major U.S benchmark indexes fell about, -0.21% to -1.54% as a weekly loss. Sectors declined for the sixth week in a row as the interest rate and inflation concerns weighed on mood, particularly in growth stocks. The Nasdaq and the small-cap Russell 2000 Index both finished the week in the bear market territory.

According to FactSet, earnings performance in the S&P 500 continues to improve, with first-quarter profits likely to rise roughly 9% based on businesses that have reported so far and predictions for firms that haven’t yet published earnings. According to an employment report released on Friday, the economy created 428,000 jobs in April.

unemplyment rate-The Stock Market Takes a Beating

Source: Factset

Government bond prices declined, causing the 10-year US Treasury Bond yield to rise late in the week.

Europe

Europe’s stocks fell on expectations that central banks may have to increase their efforts to control inflation, thereby jeopardising economic development. Lockdowns in China to combat the spread of the coronavirus, as well as the situation in Ukraine, heightened the concern.

People were more interested in high-quality government bonds because they were worried about rising prices and slowing economic growth.

APAC

Most APAC benchmark indexes tumbled over 2% as a weekly loss. Asian equities fell with Wall Street as concerns spread that interest rate rises to combat inflation may stifle economic development.  Hong Kong’s Hang Seng HK: HSI underperformed and plunged by over -5.16%. Despite the instability produced by the US Federal Reserve’s decision to raise interest rates by 50 basis points for the first time since 2000, Japan’s Nikkei 225 Index rose 0.58 %.

Underlying market movement

Underlying-Weekly-5-9-2022-The Stock Market Takes a Beating

After falling for most of April, the price of US crude oil rose to more than $110 a barrel on Friday, the highest level since late March. Impending European Union sanctions on Russian oil and the possibility of lower global supply boosted the price.

Sentiment Analysis

The overall attitude for the week remains mixed. In terms of the trend of sentiment, the Dow-30 index has moved into a positive area. The Nasdaq-100 index predicts a major negative outlook for the coming week. The remainder of this week’s U.S. market remains unchanged.

The sentiment trend for European indexes FTSE-100 and FTSE-MIB turns negative. However, the French market CAC-40 exhibits a strong weekly uptrend.

The sentiment around the main APAC indexes continues to be neutral. However, the Chinese index CSE-50 reverses its bullish trend from the previous week and enters the negative territory.

Sentiment Trend

Sentiment Trend Chart-5-9-2022-The Stock Market Takes a Beating

The following critical economic indicators and earnings reports may determine the market this week, which can alter current sentiment. The source (https://www.fxstreet.com/economic-calendar) includes hourly earnings growth and the unemployment rate. 

Sentiment Score

Sentiment Values-5-9-2022-The Stock Market Takes a Beating

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-5-9-2022-The Stock Market Takes a Beating

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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