As financial markets wrap up the final full trading week of 2008, investors are contending with “quadruple witchings”, that is the day on which stock index futures, stock index options, stock options and single stock futures all expire.
French investment bank Calyon says that in addition the U.S. Treasury debt future also expires on Friday. “More witches than a Hallowe’en party,” the bank said in a note to clients.
“It is Friday, six days before Christmas in the middle of a credit crunch and this will only amplify the movements.”
However, investors, who must have had a fair dose of crises already this year, must be hoping the witching Friday will pass in peace.
As U.S. politician Henry Kissinger once said: “There cannot be a crisis next week. My schedule is already full.”
