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President’s Tweets, US-China economic conflict and stock market Volatility: Evidence from China and G5 countries

Yusaku Nishimura and Bianxia Sun

The North American Journal of Economics and Finance, 2021, vol. 58, issue C

Abstract: This study provides empirical evidence that the tweets from US President Donald J. Trump influence the trading decisions of investors worldwide. We examine the effects of Trump’s tweets related to China on stock market volatility in China and the G5 countries. Our results show that Trump’s original tweets related to the US-China economic conflict expand volatility in stock markets worldwide, and the US-China trade friction intensifies this effect. Furthermore, Trump’s tweets with different sentiments have different impacts on the returns of global stock markets. Our findings confirm that international investors may make their investment decisions based on information conveyed in these tweets.

Keywords: High-frequency data; Social media; Stock market volatility; Trump tweets; US-China economic conflict (search for similar items in EconPapers)
JEL-codes: C5 G15 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:58:y:2021:i:c:s106294082100125x

DOI: 10.1016/j.najef.2021.101506

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