<
https://stories.theconversation.com/the-market-moves-before-trump-posts/>
"It has long been the case that when a US president speaks, financial markets
react.
Sometimes this is due to statements made about specific economic matters (such
as a new policy), or just because the president’s words instil confidence – or,
indeed, uncertainty – in traders as they try to predict the future.
And, of course, President Donald Trump is no different in this respect,
although he is unusual for making many of his pronouncements via Truth Social,
the social media platform he part-owns.
When he posts, many things will happen in the markets.
Algorithm-driven trading systems will have ingested the statement within
seconds, and made decisions about buying and selling stocks and commodities
just a few more seconds after that.
Professional trading firms will likewise use the news to inform their
decision-making.
Retail investors – regular people trading at home – might see the post on their
feed, interpret the content, and act accordingly.
Put simply, new information shifts the calculus over supply and demand. People
buy and sell assets, and prices change."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
