In­dex to gauge im­pact of Trump tweets

The Times of India (New Delhi edition) - - Times Global - TIMES NEWS NET­WORK

Mum­bai: US Pres­i­dent Don­ald Trump’s tweets — es­pe­cially on the US-China tar­iff war and US cen­tral bank’s in­ter­est rate de­ci­sions — have had im­mense ef­fect on the global fi­nan­cial mar­kets, lead­ing to wild swings in the prices of stocks and bonds.

To gauge im­pact of Trump’s tweets on mar­kets, an­a­lysts at JP Mor­gan has launched a new in­dex named ‘Volfefe’. It de­rives its name from Trump’s May 2017 tweet with a fake word ‘Cov­fefe’. Ac­cord­ing to JP Mor­gan, since tak­ing of­fice in Jan­uary 2017, Trump has tweeted more than 10,000 times and of late the pace has ac­cel­er­ated, with most of these re­lat­ing to trade and mon­e­tary pol­icy. “We find strong ev­i­dence that tweets have in­creas­ingly moved US rates mar­kets im­me­di­ately af­ter pub­li­ca­tion,” JP Mor­gan an­a­lysts wrote.

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