News24
10 Sep 2019, 01:13 GMT+10
Donald Trump has been tweeting more than ever in recent months and is also moving financial markets more, according to a new report by JPMorgan Chase that analysed the US president's Twitter habit.
The report unveiled a new "Volfefe" index that measures volatility after presidential tweets and said Trump's market-moving missives on trade and monetary policy surged in August, exacerbating volatility in the bond market.
Analysts studied movements in the 10-year US Treasury market at a variety of intervals, including one minute, five minutes and one hour.
"By this metric, 'market-moving tweets' have ballooned in frequency this August," the report said. "Importantly a few episodes have been associated with a sharp rise in implied volatility."
The name of the index is a riff on a Tweet from May 2017 that mentioned "covfefe," which is not a word. Trump has sometimes been called the "Tweeter in Chief."
Market-moving tweets tend to receive fewer "likes" and retweets than Trump's other tweets, the report said. Top market-moving words include "China," "billion" and "products," followed by "dollars," "tariff," and "trade."
The report did not analyse individual tweets during August, which was also a rocky period for the stock market due to the escalating US-China trade war and an inversion of the US Treasury yield-curve, often a harbinger of recession.
August Trump tweets included the shock announcement on August 1 that the US would impose new tariffs on $300bn of Chinese goods, as well as a series of escalating attacks on Federal Reserve Chair Jerome Powell.
Tariffs not the only barrier to African Continental Free Trade Agreement - expert
Trump blamed the Fed chief for the inverted yield curve on August 14 and questioning whether Powell was a "bigger enemy" than Chinese leader Xi Jinping on August 23.
The JPMorgan report observed that Trump has maintained "a remarkably consistent daily presence" since taking office, averaging more than 10 tweets a day.
"The highest volume of tweets over the past four years has in fact come in recent months," the report said.
However, the faster pace of tweets is partly accounted for by retweets of messages sent by others, according to the report.
Get a daily dose of San Jose Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to San Jose Sun.
More Information(Photo credit: Nathan Ray Seebeck-Imagn Images) Masataka Yoshida is expected to be in the lineup when the Boston Red Sox try to complete...
(Photo credit: Steven Bisig-Imagn Images) After a week of angst that saw them fall out of first place in the American League East,...
(Photo credit: Mitch Stringer-Imagn Images) New York Mets outfielder Juan Soto might be trying to prove a point this week after he...
(Photo credit: Denis Poroy-Imagn Images) Luis Arraez homered in the seventh inning to break up a scoreless tie Tuesday night and...
(Photo credit: Sergio Estrada-Imagn Images) Lawrence Butler homered twice and Nick Kurtz belted his first career grand slam to lead...
(Photo credit: Denis Poroy-Imagn Images) Luis Arraez homered in the seventh inning to break up a scoreless tie Tuesday night and...
LONDON, U.K.: This week, BP appointed Simon Henry, former Shell finance chief, to its board as a non-executive director effective September...
OTTAWA, Canada: With Canada Post struggling to maintain operations amid labour unrest, rivals like FedEx and UPS are stepping in to...
NEW YORK, New York - U.S. and global markets showed a mixed performance in Tuesday's trading session, with some indices edging higher...
PARIS, France: French military and intelligence officials have accused China of orchestrating a covert campaign to damage the reputation...
NEW DELHI, India: Birkenstock is stepping up its efforts to protect its iconic sandals in India, as local legal representatives conducted...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...