Index to gauge impact of Trump tweets
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.