On Wall Street they created an index to measure the impact of what Donald Trump publishes on social networks

The publications of the president of the United States, Donald Trump, have given to talk to political analysts since the beginning of his term. However, the tycoon's verbiage also affects the financial markets and Even a tweet can generate unexpected gains or losses to operators.

Given this situation, JP Morgan, one of the world's leading investment banks, announced the creation of an index to determine the impact that the president's tweets have on the market republican.

As is known, the president sends messages on various topics ranging from the commercial war with China to the policies of the US Federal Reserve. It also usually refers to companies listed on the main exchanges in North America. For the big banks and investors These messages generate financial movements in the Treasury bonds.

This is why they decided to create the "Volfefe Index", named after a May 2017 tweet where Trump published a mysterious puzzle: Who can figure out the true meaning of "covfefe" ??? Enjoy! (Who can discover the true meaning of covfefe? Enjoy!). This generated endless teasing in the 280-character social network.

JP Morgan Chase & Co. economists concluded that Trump's tweets have significantly increased the volatility of some financial products and that they are a factor that operators take into account. "Based on the frequency of market movements in relation to Trump's tweets, it was observed that they shot up last August"they affirmed.

Volatility has been seen, according to specialists in US financial markets, "in interest rate derivatives known as swaption, a type of financial derivative "."This is particularly evident at the shortest end of the curve, with two and five year rates more affected than 10 year values."they explained.

The tweets in question were not included in this report, but identified keywords or key words used by Trump that generate more impact in the markets. "China", "one billion" and "products" were some of those mentioned by this firm most likely to affect prices.

This is because the commercial and monetary war has become a central issue for the White House and any type of declaration is thoroughly analyzed by all sectors that could be affected.

Currency traders at Citigroup Inc. considered that messages posted on Twitter are increasingly becoming relevant elements when making a financial decision.

For their part, Bank of America analysts Merrill Lynch published a note last week where they concluded that "in those days when President Trump tweeted with relative frequency they tended to see negative returns of 9 basis points on average".