Trump’s tweets are tracked by JPMorgan’s index

 Breaking News
  • Microsoft, Amazon and eBay are at record highs On Tuesday, securities of Microsoft Corp, Amazon.com Inc and eBay Inc broke records. The rush of investors’ demand for the shares of those companies involved in electronic commerce caused such...
  • Quarantine in Hong Kong is not for everyone Hong Kong is rescuing its stock exchange. In order to give life to the trading platform, the administration of the metropolis has shown flexibility concerning quarantine measures. So, Christopher Hui...
  • Economy of Japan demonstrates recession In the first quarter of this year, the economy of the Land of the Rising Sun dropped by 0.6% in monthly terms. The figures are not optimistic but are better...
  • Energy market news On Saturday, representatives of the countries included in the OPEC+ cartel managed to agree on the extension of the restrictions on oil production. It also became known that those countries...
  • Bentley fires employees in order to prevent losses in 2020 The Bentley brand has long been synonymous with luxury living. Unfortunately, the British automaker has to save because of a forced two-month break. The company’s CEO Adrian Hallmark said to...
Trump’s tweets are tracked by JPMorgan’s index
September 13
09:00 2019

Representatives of the famous Bloomberg agency said that JPMorgan employees had created a special ‘Volfefe’ index. This index can track how the President’s tweets affect the state of the markets, including the yield on government bonds.

The index shows the level of volatility of 2-year and 5-year bonds after President Trump posts messages. The name of the index is an anagram from “Vol” (volatility) and “fefe” (half of the word “covfefe”, which appeared in one of the president’s tweets).

Most of all the markets react to the words such as “China”, “billion”, “goods”. Tweets with these words are the least liked and reposted. We recall that Donald Trump was elected President of America in November 2016. Since that time he publishes about 10 posts per day. 64 million people has subscribed to his profile.

Experts say that even though there are several thousand Trump’s tweets, only 146 ones have influenced the market.

The American leader publishes messages in the microblog mainly between 12 and 2 p.m. But now and then he posts information at about 3 a.m. These nightly tweets have an extremely bad effect on the markets. This happens because at night trading volumes are mainly small. If you believe the analysis of the president’s twitter, he rests from 5 to 10 a.m. This is the only time when he publishes no posts.

The conflict with China and criticism of the Federal Reserve are most popular topics on the presidential Tweeter.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company
UFT Group

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment