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

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  • Nishimura, Yusaku
  • Sun, Bianxia

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.

Suggested Citation

  • Nishimura, Yusaku & Sun, Bianxia, 2021. "President’s Tweets, US-China economic conflict and stock market Volatility: Evidence from China and G5 countries," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:ecofin:v:58:y:2021:i:c:s106294082100125x
    DOI: 10.1016/j.najef.2021.101506
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    Cited by:

    1. Abdollahi, Hooman & Fjesme, Sturla L. & Sirnes, Espen, 2024. "Measuring market volatility connectedness to media sentiment," The North American Journal of Economics and Finance, Elsevier, vol. 71(C).
    2. Beckmann, Joscha & Czudaj, Robert L. & Murach, Michael, 2024. "Macroeconomic effects from media coverage of the China–U.S. trade war on selected EU countries," European Journal of Political Economy, Elsevier, vol. 85(C).
    3. Nishimura, Yusaku & Sun, Bianxia, 2025. "Impacts of Donald Trump's tweets on volatilities in the European stock markets," Finance Research Letters, Elsevier, vol. 72(C).
    4. Ghosh, Indranil & Alfaro-Cortés, Esteban & Gámez, Matías & García-Rubio, Noelia, 2024. "Reflections of public perception of Russia-Ukraine conflict and Metaverse on the financial outlook of Metaverse coins: Fresh evidence from Reddit sentiment analysis," International Review of Financial Analysis, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    High-frequency data; Social media; Stock market volatility; Trump tweets; US-China economic conflict;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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