Investigators of a $7 billion fraud at French bank Societe Generale say that the only trader implicated in the scandal acted alone.

"At this stage of the investigations, there is no evidence of embezzlement or internal or external complicity," according to a report by a committee charged with investigating the losses.

Report: 2nd French bank trader queried

PARIS—French police were questioning a second trader Friday about whether he knew of trades that led to billions in losses at bank Societe Generale, according to a newspaper report.

Police said they could not comment, and officials at the prosecutors' office were not immediately available for comment.

The respected daily Le Monde reported that the trader was in custody for questioning about his relationship with Jerome Kerviel, a futures trader accused by Societe Generale of massive unauthorized bets on European markets that the bank said cost nearly 5 billion euros (more than $7 billion) to unwind.

Societe Generale has said it believes that Kerviel had no accomplices. Officials at the bank, one of France's biggest, did not immediately return calls seeking comment.

Preliminary charges have been filed against Kerviel and he remains under police protection, but has been released.

Derek Frey's Outlook

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Oil price strikes record $US90

CRUDE oil prices struck a record $US90 a barrel in after-hours trading in New York overnight, amid increased tensions between Turkey's government and Kurdish rebels in northern Iraq.

Oil prices have pushed higher this week amid geopolitical angst related to the Turkey-Iraq border and a weakening dollar, which makes dollar-priced commodities such as oil cheaper for buyers with stronger currencies and therefore lifts crude demand.

Dollar - How Low Will The Fed Go?

Nevertheless, the yen may have an opportunity to gain this week, as risk aversion trends remain the primary driver of the low-yielding currency. As a result, traders should keep an eye on global stock markets, as a plummet in equities could push USDJPY back down towards 109.00. – TB Can Cable Hold Above Critical Support at 2.02? Last week we questioned whether the Bank of England would opt to cut rates in December, and indeed, they did. The BOE cut rates by 25bp to 5.50 percent for the first time in more than two years, in line with what futures markets were pricing in but against consensus estimates of economists polled by Bloomberg News. In the bank's policy statement, the MPC noted that signs had emerged that growth has started to slow, and that downside risks were mounting as "conditions in financial markets have deteriorated and a tightening in the supply of credit to household and businesses is in train." Meanwhile, the BOE judged that inflation would hold above target in the short-term, but that a slowing of demand growth would pull inflation "back to target in the medium term." The minutes of this meeting will be published on December 19, but with Cable bouncing from critical support at 2.02 following the decision, the markets have judged the BOE's statement as somewhat neutral as the MPC is not likely to continue easing monetary policy in January given inflation risks.

CME up after volume jumps

After a halting start, the year-end rally gained momentum, with stocks rising roughly 7 percent in less than two weeks.

Among winners, shares of CME Group Inc., the world's largest futures exchange, shot higher after November volume advanced 41 percent on rising volatility.

Traders saw their business boom as economic uncertainty caused investors to hedge or speculate with futures contracts tied to equity indexes and interest rates on the Chicago Mercantile Exchange and Chicago Board of Trade, both owned by CME.