The Nikkei closes near flat levels, with Asian stocks failing to really take heart from the overnight gains in Wall Street. S&P 500 futures are down 0.3% in a bit of a breather after the record close seen in the cash market yesterday.

The Hang Seng is down 0.4% while the Shanghai Composite is down 0.3% currently.

10-year Treasury yields are also slightly lower by 1.1 bps to 0.915% but that also reflects a minor pullback following yesterday’s moves.

In the major currencies space, there is little change overall as we look towards European trading. The dollar remains in a vulnerable spot with EUR/USD seeking to extend the breakout momentum above the 1.2000 level.

With month-end flows out of the way, the new month is beginning in the same way November traded as stocks are keeping higher once again. The Hang Seng is up 1.1% while the Shanghai Composite is up 1.4% going into the closing stages.

Meanwhile, S&P 500 futures are seen higher by 0.8% after the cash market closed lower yesterday but produced a late push to finish closer to the highs.

In the currencies space, the dollar and yen are among the laggards so far today but key technical levels are still in play for the time being – similar to yesterday.

EUR/USD is bouncing off its 100-hour moving average with the 1.2000 level a key one to watch. Meanwhile, GBP/USD stays choppy in between 1.3300 and 1.3400 while AUD/USD buyers need to show more mettle in contesting the 0.7400 handle.

Asian equities are keeping more mixed on the session as investors are left to their own devices amid the Thanksgiving holiday in the US. The Nikkei is still the standout performer as it continues the stellar November run so far.

Elsewhere, the Hang Seng is flat and the Shanghai Composite is up 0.3%.

S&P 500 futures were lower initially but are keeping closer to flat levels now, though I’d be mindful of looking too much into this amid thinner liquidity conditions today.

Again, just be mindful that US markets will observe a half-day of trading later.

A solid close once again for Japanese stocks, with the Hang Seng seen up 0.2% and the Shanghai Composite up by 0.1% ahead of the closing stages.

With Wall Street set for a break over the next two days (partial holiday tomorrow), it may be tough to really get much of a read from the risk mood barring any major headlines to cross the wires ahead of the weekend.

Back to the Nikkei, November has been a monstrous month with gains of over 15%:

The bond market isn’t really offering much either, with 10-year Treasury yields little changed at 0.872% currently. Put that together, that is leaving FX little to work with in European morning trade so far.

EUR/USD rose to its highest levels since 1 September to 1.1930 but has pared that advance to 1.1900 again. GBP/USD also bounced from 1.3340 to 1.3385 before erasing the entire move during the past few hours.

The dollar continues to keep in a mixed spot for the most part and we are likely to be trapped in this push and pull until North American traders step in for one last round ahead of the Thanksgiving holiday starting from tomorrow.

Risk is keeping in a more positive spot after a stronger finish by Wall Street overnight, with S&P 500 futures being up by 0.7% ahead of European trading.

The transition to the Biden administration has begun and the market is also feeling good about the likely return of Janet Yellen as Treasury secretary.

In the currencies space, the dollar is slightly weaker to start the day with risk currencies leading the way. The kiwi also got an additional boost from a potential addition of house prices to the RBNZ mandate, seeing NZD/USD jump to its highest level since June 2018.

Of course, the US is closed on Thursday (26 November 2020) for Thanksgiving later this week.

The Nikkei is closing lower but off the lows seen earlier today as Asia follows the more dour mood from Wall Street yesterday for the most part.

For Japanese stocks, it has still been a stellar month so far with the Nikkei trading to its highest levels since 1991 so the slight pullback yesterday and today isn’t too hurtful.

Elsewhere, the Hang Seng is down 0.5% while the Shanghai Composite is up 0.3% as mainland Chinese equities are faring better upon hearing about more measures by local authorities to support domestic consumption earlier here.

US futures remain more guarded ahead of European trading with S&P 500 futures up 0.1% while Nasdaq futures are down 0.1%, little changed on the day so far.

Meanwhile, 10-year Treasury yields are a little lower by 1.6 bps to 0.854%. The overall mood is keeping major currencies little changed for the most part to start the session.