Donald Trump can cause waves in world markets and drive investors running scared in just a second. Most of the time it takes him just a tweet badmouthing a company or its owner for the company to lose millions or billions of dollars in market value.
Some have speculated that Trump takes advantage of the weight that his words carry, to profit from the stock market. If the president knows he is about to criticize a company and that company’s share price will drop on the stock market, he can place favourable orders before posting the tweet.
Here are five times Donald Trump caused big ripples in world markets and made entities lose a lot of their value.
1Mexican Peso – 12% depreciation
On November 8, 2016, when it was crystal clear that Donald Trump had outperformed Hilary Clinton in the American election and was going to become president, the Mexican Peso depreciated sharply on the forex market, losing about 12% of its value.
Trump was tough on Mexico during his campaign and promised to either change or abandon the North American Free Trade Agreement (NAFTA) which has helped Mexico increase exports to the United States over the years, to hundreds of billions of dollars a year.
The US President had also threatened to tax money sent by Mexican migrants in the United States to their families back home, in order to build his wall.