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The headquarters of the JP Morgan bank in New York in 2013. REUTERS / Eduardo Munoz

JP Morgan Bank has created an index to monitor the impact of Donald Trump's tweets on US markets.

With our correspondent in Washington, Anne Corpet

Since being in the White House, the US president has written over 10,000 messages on his favorite social network . The pace of production on the network has increased significantly in August and his remarks are increasingly focused on trade and monetary policy.

According to JP Morgan, these tweets have significant consequences on the markets. " We have found strong evidence that Donald Trump's tweets are increasingly moving US rates, right after they are published, " say JP Morgan analysts who have carefully studied the impact of presidential tweets on market volatility.

The Volfefe index

The index they created was called Volfefe. A strange name, which combines the word Volatility with the mysterious Covfefe , posted on Twitter by Donald Trump in 2017. According to JP Morgan, it is the word «China» which arouses the most reactions on the markets followed by the words billions and products .

Without going as far as creating an index, the Merrill Lynch bank also conducted its study, and found that the more the president tweeted, the more negative the impact on short-term rates. But the stock market remains generally favorable to Donald Trump: the Dow Jones index has risen 31% since his inauguration.