Stocks Bounce Back! The Sentiment Remain Unbiased

US:

Stocks bounce back. Despite the threat of a recession, US benchmark indexes recovered and erased the prior week’s losses as the US labour market continued to rise well in June. The economy created 37K new jobs, beating most economists’ predictions, but the unemployment rate remained at 3.6 % for the fourth month. The average hourly wage increased by 5.1%. The Nasdaq-100 technology index outperformed.

The large communication services, consumer discretionary, and information technology sectors did well within the index. Energy stocks fell substantially on Tuesday as domestic oil prices dipped below USD 100 per barrel for the first time in over two months, but they recovered alongside crude prices later in the week.

U.S UN EMPLYMENT RATE-Stocks Bounce Back

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:

After three months of losses, European stocks rose in the first week of July. However, the advances looked to be limited by China’s reimposition of some restrictions aimed at limiting the spread of the coronavirus, as well as concerns that an energy deficit could precipitate a recession in Europe. The top European benchmark indexes closed higher for the week, about 0.38% to 1.96%. The Italian index FTSE-MIB outperformed.

APAC:

Most APAC benchmark indices gained about 1.96% to 2.97% as a weekly gain. The Indian index Nifty-50 outperformed. However, the Hong Kong index HSI-50 and the Chinese index SSE-50 declined modestly. Rising coronavirus cases and increased geopolitical tensions weighed on Chinese markets. Shinzo Abe, Japan’s former and longest-serving prime minister, was shot and assassinated while giving a campaign speech in the western city of Nara on July 10. Campaigning for the legislative upper house election on July 10 was halted.

Underlying market movement:

Underlying-Weekly-7-11-2022-Stocks Bounce Back

On Tuesday, the price of US crude oil dipped below $100 per barrel for the first time since early May, owing to concerns about a recession-related reduction in demand. As the week progressed, the price of oil recovered slightly, and it was trading at just around $105 on Friday.

Sentiment Analysis

Stocks Bounce Back. The overall news sentiment trend remains in a mixed direction for the week. The sentiment trend for the U.S benchmark indexes Nasdaq-100 and Russel-2000 turn into negative sentiment. The rest remain in an unbiased view.

The sentiment trend for most European benchmark indexes turns in a mixed direction. The Italian index FTSE-MIB and the London index FTSE-100 entered the negative territory. On the other hand, the French index CAC-40 turns into a bullish view. The German index Dax-30 is in neutral view for the week.

The Asia-Pacific indexes are in a mixed bag regarding sentiment trend direction. The Japan Nikkei-225 index shifted to a bearish view regarding the sentiment trend. However, the Chinese index SSE-50 and the Hong Kong index HIS 50 are turned in a positive direction. The rest remains unbiased.

News Sentiment Trend:

Sentiment Trend Chart-7-11-2022-Stocks Bounce Back

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

Sentiment Score:

Sentiment Values-7-11-2022-Stocks Bounce 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-7-11-2022-Stocks Bounce Back

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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