Euro$ interest rate futures are mostly firmer though the rally in the fixed income markets has paused, with stocks muscling higher into quadruple witching
settlements and heavy S&P ETF rebalancing.
Friday was a so-called "quadruple witching
" day, when stock options and contracts expire, boosting volume.
While the quadruple witching
event normally coincides with index rebalancing, the scope of today's shuffling is what sets it apart.
Friday also marked "quadruple witching
day," the quarterly simultaneous expiration of U.S.
"It's quadruple witching
hour,'' said Joe "JJ'' Kinahan, chief strategist at TD Ameritrade Holding Corp.
Stock trading may be subject to unexpected swings on Friday because of a quarterly event known as quadruple witching
, when futures and options contracts on indexes and individual stocks expire.
Beware of the witch This coming Friday will mark the last so-called 'quadruple witching
' day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire.
The so-called "quadruple witching
day" hit trading on the Footsie, with early session gains of more than 30 points wiped out as futures and options expired at the same time - which only occurs four times a year.
It was estimated that, there wasn't much of a pickup in program orders after yesterday's quadruple witching
, and only selloffs were seen as investors cashed out with conflict between European leaders denting hopes of a summit agreement.
Wall Street braced for added volatility on quadruple witching
day, when contracts for stock index futures and options, stock options and single stock futures expire.
Today is quadruple witching
in the US and that always ensures extra volatility in markets.
"But investors are betting on some sideways consolidation rather than a continuation of a sharp spike in share prices." Analysts said trading was also jumpy because of the occurrence of a quarterly "quadruple witching
," which marks the simultaneous expiration of four different kinds of options and futures contracts.