Sentiment around the Coronavirus is less negative than expected

April 9, 2020

Using artificial intelligence and big data methodologies, we track the sentiment of financial market influencers. These are people and organisations, who can influence the perception of financial market participants about an asset and thereby indirectly impact its price. Since January, we have tracked how financial market influencers feel about the impact of the coronavirus on assets. These are the key takeaways: 

The coronavirus event is perceived as negative by financial market influencers – however, we have not seen extreme negative shifts in sentiment (the average sentiment score over the last 3 month is -11 with the lower boundary being -33. Our sentiment score range is between -100 and +100. The anticipated opportunities for some industries appear to outweigh extreme negative sentiment for broader stocks.

While the coronavirus was widely discussed in the media since January, we noted that the discussion of how the virus impacts assets, has only gained momentum in Mid-February. The discussion peaked in the middle of March and has started to decrease in April. 

While the sentiment score for discussions about the impact of the coronavirus on assets was very volatile up until Mid-March, the score has become more stable and has started to increase to an almost neutral level of -3 in the last few days. These are first positive signs, but it remains to be seen, whether these developments are permanent or temporary. 

Check out the latest sentiments of financial market influencers for 50’000 stocks: