Bear is Back! The Sentiment Turns into Mixed Direction!

US:

Bear is back. The major U.S. benchmark indices declined between 1% to 4%. As concerns mounted that the Federal Reserve’s war against inflation might force the economy into recession, stocks gave up some of the previous week’s significant gains. The Technology index Nasdaq-100 underperformed. The S&P 500 had its worst first-half performance around 21% since 1970.

S&P 500 FIRST HALF PERFORMANCE-Bear is Back

Source: Bloomberg

Prices of US government bonds rose for the third week in a row, lowering the 10-year US Treasury bond yield to 2.89 %.

Europe:

Shares in Europe slumped on concerns that rising inflation and interest rates will reduce profitability and push economies into recession. The top European benchmark indexes declined about,-0.56% to -3.46% as a weekly loss. The ECB’s hard-line policymakers have continued to raise the prospect of a 50-basis-point interest rate hike as early as July.

APAC:

The APAC benchmark indices gained closed in mixed directions. The indexes, SSE-50, HIS-50 and Nifty-50 have closed higher modestly about, 0.34% to 1.13% as a weekly gain. On the other hand, ASX-200, Nikkei-225 and Kospi-100 dropped about -0.59% to -2.59% as a weekly loss. The worrying attitude among Japan’s biggest businesses and a larger-than-expected drop in industrial output knocked on risk appetite.

Underlying market movement:

Underlying-Weekly-7-04-2022-Bear is Back

Crude oil WTI price closed higher modestly about 0.75% as a weekly gain. As the value of Bitcoin plummeted below the $20K mark, selling pressure continued to pound on cryptocurrencies.

Sentiment Analysis

Bear is back. The overall news sentiment turns into a mixed trend for the week. The sentiment trend for the U.S benchmark indexes S&P-500 and Dow-30 remains bullish for the week. However, the sentiment trend for the indexes Nasdaq-100 and Russel-2000 was turned into an unbiased view.

The sentiment trend for most European benchmark indexes turns into a neutral view for the week. However the German index, Dax-30 turns into an optimistic view for the week.

Most Asia-Pacific indexes have shifted to a neutral view in terms of sentiment trend. However, the Chinese index SSE-50 and the Hong Kong index HIS 50 are strongly in the negative territory.

News Sentiment Trend:

Sentiment Trend Chart-7-04-2022-Bear is Back

The following important economic indicators and earnings reports, which can alter current sentiment, may determine the market this week, including unemployment and hourly earnings on Friday (https://www.fxstreet.com/economic-calendar

Sentiment Score:

Sentiment Values-7-04-2022-Bear is Back

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-7-04-2022-Bear is Back

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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