President Trump and the impact of his speech on the markets

After Federal Reserve Chairman Jerome Powell, the biggest influencer on the market in the past two years has been President Trump and his Twitter accoun.

Last night, when Iran struck two US air bases in Iraq, Asian markets fell.

Later in the night, one of Trump’s reaction to the US market was reacting differently.

“Everything is fine,” Trump wrote. Gold fell. The oil fell. US stocks rose.

Thanks to the above, the Nasdaq index hit a record high on Wednesday. Iran also had a relationship with it because its power against American military installments did not cause any losses.

President Trump Federal Reserve Chairman market
President Trump Federal Reserve Chairman

President Trump is the Federal Reserve

Whether this was intentional or not, the market saw this as the best scenario in response to the killing of Qassam Soleimani, commander of the Quds Force in the Islamic Revolutionary Guard.

If Jack Dorsey considers charging for Twitter, now is the time.

This is especially true for financial Twitter, where investors use the platform to get news directly from above.

Brian McCarthy, a former hedge fund manager in New York who is now chief strategist at Macrolins, an investment research firm, says:

“I was sitting here trading like a crazy man last night on the news, and all the news was blurry.”

Most of them focus on China. “I jump back and forth to CNN to Fox and there is no news with these filters.

I talk to a lot of active traders, and Twitter is now the place to go for real-time tradable news.

We can now hear it directly from the top of the tippity before it appeared on Bloomberg.

According to the London-based online trading platform, ETX Capital, trading volume is in the first two years of Trump.

And in the first half of the year it was not only higher than the previous elections, it was higher than the average trading volume in the year that they happened.

President Trump – In 2016, November saw volume increase by more than 10%.

This was also reflected in the mid-term in 2018. Gold fell more than 11%.

Obama – Obama’s first year occurred during the bear market, with November’s turnover 15% higher than the rest of the year.

Mid-term – The two halves of the Obama and second elections saw a drop in turnover, averaging -6.5% compared to the rest of the year.

President Trump’s first year in office saw a 60% increase in turnover compared to 2012, and a 13% increase in the Dow Jones Index.

President Trump used Twitter to express his anger with Democrats and the media, and give evidence about what the Federal Reserve should do about interest rates.

Many in the market believe that Trump’s ongoing attacks on the Fed.

Which raised interest rates during his first two years in office, eventually led to the Fed’s decline.

At this time last year, all investors were falling to raise interest rates four.

They cut interest rates three times and stayed fourth on December 11.

President Trump also propelled markets in China’s trade war.

Investors use platforms like TweetDeck to filter trusted Twitter feeds from top-level sources like bosses and trusted correspondents on the ground.

Those who are good at extracting that information as if they were in financial news.

They end up with the news before it reaches the mainstream financial press.

Trump uses Twitter to provide official announcements that drive the markets.

Many investors find it difficult to live without them and they trade actively in these markets.

After telling “everything is fine” with Iran, the market opened higher. Hey ho!

It’s not just President Trump’s tweets that drive the markets more than any other president out there. It is also his press conferences.

One appeared late on Wednesday morning in connection with the bombing of two military installations in Iraq by Iranian missiles.

Markets doubled their gains during his short speech.

President Trump said in an official tone that he would consider imposing more sanctions.

It will keep the existing sanctions in place. He blamed Iran for the unrest in Iraq and Yemen.

Trump also called on Russia and China to

“Breaking away from the remnants of the Iranian deal and working together to conclude a deal with Iran makes the world a safer and more peaceful place.”

In reference to the Iranians who protested their government late last year.

“We must also make a deal that allows Iran to flourish,” Trump said, adding that peace in the Middle East cannot prevail if Iran continues to promote hatred and war in Iraq. Region.

It is hard to trust them as a people for peace, the country that has the semi-official mantra of “Death to America” ​​and “Death to Israel.”

Trump also said he would ask NATO to be more involved in the Middle East, rather than going it alone, a move that would take the “coalition of the willing” under President Bush at the table.

Markets began to rise quickly after he said that, almost 10 basis points higher.

He said the United States should work with Iran against ISIS, a Sunni Muslim militia that seeks to expel non-believers from parts of the Middle East.

Iranian Muslims are part of the Shiites.

Finally, Trump said he wants peace with Iran, and wants it to be a prosperous country.

The S&P 500 rose more than 30 basis points shortly after leaving the platform.

Vladimir Senorelli, president of Bretton Woods Research, an investment research firm, says:

“Twitter must be one of the most undervalued properties on the Internet

Soon it became fatal Bloomberg. Who needs to go to Bloomberg when you can go to Twitter

If Michael Bloomberg is smart, he’ll buy it. Find the market value of all major media that should be Twitter. ”

Trump has made Twitter great again, that’s for sure.


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Marowa Al Tujjar
Marowa Al Tujjar
مديرة القسم الصحفي - كاتبة و محررة إقتصادية متخصصة بالعملات الرقمية

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