Global markets were whipsawed in the early hours of Wednesday after President Donald Trump unleashed a barrage of sometimes conflicting Twitter posts.
U.S. stocks slumped Tuesday while Treasuries surged after Trump tweeted that he had decided tohalt stimulus talks. His posts during Asian hours on Wednesday — calling for support for airlines and the Paycheck Protection Program — helped erase losses in U.S. stock futures and Japanese shares. Most Asian currencies crept lower amid uncertainty over the next round of U.S. stimulus. In total, Trump tweeted or retweeted just under 40 times in the space of two hours.
Trump Blazes Away on Twitter at Many of His Usual Suspects
That’s boosting market volatility, which has already picked up this month after Trump tested positive for coronavirus as investors grappled with the existing uncertainty surrounding the U.S. election and a stimulus deal. A measure of implied volatility on one-month Treasury options jumped nearly 18 percentage points on Oct. 6, its biggest daily increase since March 12, when the market was rocked by surging coronavirus cases.
The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!3:54 AM · Oct 7, 2020
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