Bear Run Arrested! Sentiment Turns into Positive!

US:

Bear run arrested. The key benchmark indices in the United States rose more than 5% to 7%, recovering somewhat from bear region amid concerns that GDP and inflation may be moderating. Several economic indicators suggested that the Fed’s monetary tightening was having the desired effect of slowing the US economy and lowering inflation.

Prices for US government bonds increased for the second week in a row, lowering the 10-year US Treasury bond yield to 3.13 % on Friday

10-year US Treasury bond yield

us 10 year treasury yield curve-Bear Run Arrested!

Europe:

The past three weeks’ bear run in Europe has been halted as signs that the economy is slowing cast doubt on whether central banks would aggressively seek to increase interest rates. The top European benchmark indexes closed higher, 1.5% to 3.5%. However, the German index Dax-30 declined modestly.

APAC:

Most APAC benchmark indices gained between 1% and 3% on a weekly basis. The Hong Kong index HSI-50 outperformed. The Japan index Nikkie-225 recovered modestly from the last week’s losses with the Expectation that the Bank of Japan (BoJ) would maintain ultra-loose monetary policy despite rising consumer prices and the currency hitting new lows boosted sentiment.

After President Xi Jinping announced plans to implement additional measures to aid the economy and lessen the effects of the COVID-19 outbreak, Chinese stock markets rose on prospects of stimulus. However, the Korean index Kospi-100 index dropped more than 3% as a weekly loss.

Underlying market movement:

Underlying-Weekly-6-27-2022-Bear Run Arrested!

For the second week in a row, crude oil prices in the United States have declined, worrying that rising inflation and interest rates may lead to a recession. Oil prices dropped to roughly $107 per barrel on Friday from over $120 per barrel just two weeks ago.

Sentiment Analysis

Bear run arrested. The general news sentiment trend this week is very good. For the week, the top US benchmark indexes moved into positive territory.

In contrast, the mood trend for the majority of European indexes is slanting negative for the week. However, the Italian index FTSE-MIB has a strong optimistic outlook for the week.

The bulk of Asia-Pacific indexes has shifted to a positive sentiment trend. However, the Australian benchmark ASX-200 continues to be in a negative direction.

News Sentiment Trend:

Sentiment Trend Chart-6-27-2022-Bear Run Arrested!

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

Sentiment Score:

Sentiment Values-6-27-2022-Bear Run Arrested!

Note: The news sentiment data is the most useful additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

The table below displays the buy/sell indications generated by InfoTrie’s proprietary Investment/Trading models. These models were created using technical, foundational, and quantitative approaches, with the sentiment score based on news serving as a secondary overlay.

At InfoTrie, I counted the random signals from various Trading/Investment models.

Buy Sell-6-27-2022-Bear Run Arrested!

The news sentiment score provides a significant ” Alpha ” improvement 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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