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