Europe

The State Department issued an alert on Monday to US citizens traveling to Europe about a “heightened risk of terrorist attacks,” particularly over the holiday season. “Have an emergency plan of action ready,” the US urged according to NBC.

"Credible information indicates the Islamic State of Iraq and the Levant (ISIL the U.S. gov't acronym for ISIS or Da'esh), al-Qaeda, and their affiliates continue to plan terrorist attacks in Europe, with a focus on the upcoming holiday season and associated events," the travel advisory read.

European and Asian stocks rose after the early scare from the latest Fukushima quake dissipated when all Tsunami warnings were cancelled. The global risk on mood was spurred by another jump in crude, which was up 1% in early trading, with the commodity complex now enjoying its biggest three-day rally since May, after Nigeria signaled optimism that OPEC will agree a supply-cut deal next week in Vienna. S&P futures are up 0.3%, with the cash index set to open at new record highs.

FX traders are pricing in as big a potential disruption event for Italy's referendum as they did (correctly) for the Brexit vote. So-called 'currency-vigilantes' are buying EURUSD protection across the Dec 4th date of the vote in size as Italian bond spreads (over Bunds) push to 30-month highs.

I am just back from Europe, where the Germans are preparing to sing a Christmas favorite, the “Make America Great Again” version of which goes: O Schadenfreude, O Schadenfreude, Du bringst ein schoen November. Which means, roughly: O Schadenfreude, O Schadenfreude, Thanks, pal, for the election result.

It’s a result that has made it fun to read the New York Times—at least for a while.

Despite speculation over the past year that Canada may join Japan and Europe in the NIRP club and launch negative interest rates, so far the BOC has stood its ground. However, starting on December 22, for the broker dealer clients of one of Canada's most reputable financial institutions, BMO Nesbitt Burns, it will be as if the Canadian bank has cut its deposit rate on most currencies, to match the deposit rate of Switzerland.