Day 50 - Rate expectations and weekend rumbles...?
A fairly quiet one in the markets today, with the real event of note being the rolling of equity futures contracts to June (or M4 contracts in trading terminology). Days like today, with the expiry of index futures, index options, single stock futures and single stock options, are known in the industry as 'quadruple witching' and can be very volatile - today, however, was an uneventful example.
Interesting to note the relative interest rate expectations now built into the Euribor and Eurodollar curves - so representing interest rate expectations for the Eurozone and the US respectively:
All eyes are still on the situation in Crimea, the actions being taken by the U.S. and Europe, and what Putin's next move will be. Could there be incursions into Eastern Ukraine over the weekend, which in turn would trigger the '3rd step' of EZ sanctions against Russia - these would be economic in nature, damaging to Europe also, but far more punitive than the current sanctions which are against individuals. We'll find out soon...
On a brighter note, we'll be taking a blog holiday to focus on our current trainees and their experience with live markets. We are currently looking to run a further training programme in June of this year. If you would like more information about Pyne Trading or our training then please do get in touch with us at [email protected], or visit our website at http://www.pynetrading.com/
You can read a day by day account of our previous training programme here: http://storify.com/PyneTrading/training-programme-1
In the meantime, all the best and happy trading!













