A famous and indecipherable Trump tweet becomes a stock market index on Wall Street

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US financial services analysts JPMorgan Chase & Co have created a stock index to measure the impact of President Donald Trump's tweets about the country's interest rates, reports Bloomberg.

This indicator has been baptized with the name 'Volfefe', which combines the words 'volatility' and 'covfefe', a mysterious word that appeared in a tweet published by Trump in 2017. The explanation around the meaning of The latter generated all kinds of doubts, speculation and, of course, a wave of funny comments and memes on the Internet.

'Volfefe' also seeks to quantify the supposed "increasing effects" on the yields of US bonds around the trills of the US leader. His words on the social network, in addition, are becoming "increasingly relevant" For currency exchange, experts from the financial Citigroup, cited by the agency, say.

Trump's tweets are having a Statistically significant impact on US Treasury yields. For example, experts have detected that their messages that include words such as 'China', 'products', 'Democrats', 'billion' and 'large' have high chances of affecting prices.

"A wide range of assets, from single-name stocks to macro products, has found that its price dynamics is increasingly linked to a handful of tweets from the commander in chief (Trump)," said a JPMorgan analyst.

In their attempt to calculate the effect of the activity of the US president on Twitter, JPMorgan and Citigroup showed that their tweets are followed by a stretch of greater market volatility World currencies. In addition, few sectors insensitive to their messages.

"We found little evidence that the market is 'fatigue' with Trump's tweets. In any case, the opposite has proven to be true, since some of the biggest market movements under Trump's tweets have been happening recently," highlights Sukrita Chatterji, quantitative currency strategist at Citigroup.

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