For Global Economy and Emerging Markets, How Much Better News Sentiment on US Helps
Over last ten days, there have been interesting takeaways if we do the sentiment analysis for news flow around some very important and immensely popular key words, which matter for USA.
First the key positive from this analysis…we find a little bit of improvement in the overall news sentiment on words such as Donald Trump, Dow Jones Index, Fed Rate, Nasdaq Composite, Chinese Economy and US Economy.
The key findings as seen in the chart as well;
- Though there has been a dip in last couple of days in sentiment for Chinese economy, overall, there has been a massive improvement in last week
- Some improvement in sentiment for US economy too and that is a good thing which is driven by the hopes that lock down will start getting lifted on a case-by-case basis
- Improvement in sentiment for Dow Jones Index and Nasdaq composite both which is not a surprise looking at the US markets
- However, the biggest worry is that the sentiment remains poor on Donald Trump and Fed Rate which might have long term repercussions
- On a cumulative basis, the news sentiment for key words which matter for USA has improved in last few days but only a little.
Overall, the improvement in news sentiment over US economy is reflecting in the US markets as well. But what is needed now is more confidence in Trump and Fed on their ability to pull this off. Watch out for this space as we keep track of how this evolves.
EM Alpha LLC
For more EMAlphainsights on Emerging Markets, please visit https://emalpha.com/insights/. To know how you can use EMAlpha’s unstructured data on Emerging Markets for better investment decisions, please send us an email at [email protected].
EMAlpha, a data analytics and investment management firm focused on making Emerging Markets (EMs) accessible to global investors and unlocking EM investing using machines. EMAlpha’s focus is on Unstructured Data as the EMs are particularly susceptible to swings in news flow driven investor sentiment. We use thoroughly researched machine learning tools to track evolving sentiment specifically towards EMs and EMAlpha pays special attention to the timely measurement of news sentiment for investors as these markets can be finicky and sentiment can be capricious.Our team members have deep expertise in research and trading in multiple Emerging Markets and EMAlpha’s collaborative approach to combining machine learning tools with a fundamental approach help us understand these markets better.
This insight article is provided for informational purposes only. The information included in this article should not be used as the sole basis for making a decision as to whether or not to invest in any particular security. In making an investment decision, you must rely on your own examination of the securities and the terms of the offering. You should not construe the contents of these materials as legal, tax, investment or other advice, or a recommendation to purchase or sell any particular security. The information included in this article is based upon information reasonably available to EMAlpha as of the date noted herein. Furthermore, the information included in this site has been obtained from sources that EMAlpha believes to be reliable; however, these sources cannot be guaranteed as to their accuracy or completeness. Information contained in this insight article does not purport to be complete, nor does EMAlpha undertake any duty to update the information set forth herein. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information contained herein, by EMAlpha, its members, partners or employees, and no liability is accepted by such persons for the accuracy or completeness of any such information. This article contains certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential,” “outlook,” “forecast,” “plan” and other similar terms. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of certain investment strategy. All are subject to various factors, including, but not limited to, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting the operations of the companies identified herein, any or all of which could cause actual results to differ materially from projected results.