Archives of “May 26, 2020” day

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Testosterone and Cortisol in Trading for Traders – Anirudh Sethi

  
Analysis, Education
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Books and films often dramatize financial-market traders as macho gamblers. Now there may be scientific evidence to back up differently as two researchers have linked testosterone levels to the success of traders in one London market while another researcher has linked testosterone and cortisol able to increase financial risk and may destabilize markets.

According to researchers stressful and competitive working environments could be increasing hormone levels and having an impact on decision-making. Experts agreed it was important to know how hormones affected traders.

Both cortisol and testosterone occur naturally in the body. The levels of cortisol do increase when we experience psychological or physical stress. This causes the blood sugar levels to rise and prepares the body for a “fight or flight” response.

The hormones testosterone and cortisol may reflect different stress triggers.

Changes in hormone levels may affect success in the financial markets.

As soon as we sense danger, our body will release adrenaline and cortisol. The adrenaline increases our blood pressure and heart rate and boosts our energy supplies, whereas cortisol has a different job.

Cortisol is also known as the stress hormone. It is a steroid hormone made in the cortex of the adrenal glands, which is released into the blood and transported all over the body. This release in our body leads to our senses being heightened and our heart rate rising. It primes us for our ‘fight or flight’ state to help us survive and get away from danger.

Cortisol is very good for the body in terms of the benefits it provides, unless you have too much of it. Our body is set to react to danger, release cortisol and adrenaline, before calming down once the danger is gone. But, if you are constantly in a state of stress, the cortisol is going to

stay being produced in your body and that’s when it can cause problems.

Nearly every cell has receptors for cortisol and this can cause different reactions taking place. When our body is preparing for fight or flight, there are functions that aren’t needed at that point in time, which means other important systems shut down. Our immune system, digestive system and reproductive system all start to shut down. These reactions are great if you’re just needing that fight or flight mode to escape a predator, but not so good if you spend all day being stressed-out about your trades.

One other issue is that you will be more susceptible to getting ill, while your immune system is

down. It goes without saying that if you’re recovering in bed, you’re not going to be trading (more…)

The #AUD has completed the coronavirus comeback

  
Analysis, Forex

AUD/USD is back to where it was in mid-February

AUD/USD is back to where it was in mid-February
The Australian dollar has now erased all the coronavirus declines and has rebounded to where it was on February 19.
One of the reasons the Australian dollar has been so strong is that it has essentially defeated the virus domestically. Local cases are minuscule and people there rightfully feel safe.
A month ago, I asked: Where would you want to be right now? The answer is in Australia or New Zealand. That’s where money wants to be as well and you can see it flowing in today, despite all the tensions with China.
What next? The March 8 intraday high of 0.6685 is a big level to watch. AUD/USD needs to get above it to truly erase the virus declines. If it can get there then a path to 0.7000 is entirely viable.
As with all risk trades right now, you need to ignore the obvious economic pain of the virus and take a leap of faith into cheap money and deficit spending.

Eurostoxx futures +1.1% in early European trading

  
Analysis, Global Indices
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  • German DAX futures +1.0%
  • UK FTSE futures +2.4%
  • Spanish IBEX futures +1.0%
This follows a round of solid gains across the board to start the week yesterday, in which we saw the DAX starting to break out to fresh highs in nearly two months:
DAX

Nikkei 225 closes higher by 2.55% at 21,271.17

  
Analysis, Global Indices

The Nikkei breaks above its 100-day moving average

Nikkei

Japanese stocks are taking heart from the more positive risk mood today, as the rally in the equities space is starting to see a new extension leg to start the week.

The close in the Nikkei is the highest since 5 March, with gains of 2% also observed in the Hang Seng and the Shanghai Composite index also gaining by 0.8% on the day.
US futures are still keeping near 2% gains and that is feeding the more positive risk appetite to start the session. In the currencies space, the dollar and yen are weaker as a result with AUD/USD sitting near session highs at around 0.6578 currently.

Wuhan’s ‘Bat woman’ says coronavirus is “just the tip of the iceberg”

  
  Analysis
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Shi Zhengli is known as China’s “bat woman” due to her work as deputy director of the Wuhan Institute of Virology

  • Is a virologist recognised internationally for her work on coronavirus in bats
Speaking in an interview on Chinese state television she said viruses being discovered now are “just the tip of the iceberg”
  • called for international cooperation in the fight against epidemics
  • research into viruses needs scientists and governments to be transparent and cooperative
  • “If we want to prevent human beings from suffering from the next infectious disease outbreak, we must go in advance to learn of these unknown viruses carried by wild animals in nature and give early warnings”
  • “If we don’t study them there will possibly be another outbreak.”
Comes via Bloomberg, more here at the link
Shi Zhengli is known as China's "bat woman" due to her work as deputy director of the Wuhan Institute of Virology

Bank of Japan Governor Kuroda says economy to remain in a severe situation

  
  Analysis

Kuroda speaking in parliament

  • Japan’s economy likely to remain in severe state, prices to remain on weak note due to pandemic impact, falling oil costs
  • risks to Japan’s economic outlook skewed to downside
  • will actively take steps to ease corporate strains, coordinating with govt
  • BOJ ready to ease without hesitation if needed with eye on pandemic fallout
Full text of Kuroda’s statement to parliament is here

US emini S&P 500 futures moving higher on Globex reopen (here’s why)

  
  Analysis

Novavax will begin human testing of its coronavirus vaccine …in Australia

That was a headline from an hour or so ago, and more detail here:
  • More on that Novavax Coronavirus vaccine human testing getting underway
Re the headline to the post, given the usual market response to miracle coronavirus cure news (whatever the flavour of the day happens to be (bleach excluded) ) I am attributing the equity index future pop to this news. Pretty soon it’ll be over to the further investigations to show that its not actually a miracle cure at all, but in the meantime make hay while the sun shines!
Novavax will begin human testing of its coronavirus vaccine ...in Australia
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