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Beware "Extreme Volatility" Ahead Of Quad-Witching Friday: BMO

Quadruple witching weeks tend to be extremely volatile as large derivative positions are rolled over. Since 1990 the average weekly spread between the high and low for the S&P 500 during December quadruple witching weeks is 2.98%. Using Friday’s closing data, this would result in a potential range of 2326 on the high side and 2189 on the low side for the S&P 500 this week.

Speculation Grows Japan Will Tighten Next

One of central banking’s most aggressive easers—the Bank of Japan—may soon have to think about tightening for the first time since 2007. According to the WSJ, "the latest buzz in Japanese monetary-policy circles is that the BOJ may have to lift the 10-year government-bond target from a recently set zero."

Global Equity Euphoria Prepares To Meet Mario Draghi

There’s seemingly no stopping the equity side of the “Trumpflation” trade in what may be developing into an epic year end blow-off top. The euphoria which took the S&P 500, Russell 2000 and the Transports to all-time highs yesterday, and the Dow to less than 500 points away from 20,000 carried over into Asian stocks (+0.8%) as they followed bullish trend, while European stocks rose for a fourth day.

JPMorgan, HSBC, Credit Agricole "Bank Cartel" Fined $521 Million For Euribor Rigging

The European Commission has fined Crédit Agricole, HSBC and JPMorgan Chase, a total of €485m for participating in a cartel concerning the pricing of interest rate derivatives denominated in euros. “The aim of the cartel was to distort” Euribor, said EU competition policy chief Vestager. The traders involved "tried to submit quotes to move the Euribor rate up or down."