• APAC stocks traded mixed with price action mostly rangebound amid a lack of notable newsflow and Wall St. trade.
• European equity futures were uneventful with the Euro Stoxx 50 future -0.1% after cash market closed up by 0.4% yesterday.
• DXY remains on a 105 handle, EUR/USD holds on to 1.04 status, G10 FX is overall relatively contained.
• Crude was marginally higher as top OPEC producers reaffirmed sticking to the OPEC+ framework.
• Looking ahead, highlights include UK GfK (Nov), German GDP Detailed (Q3), CBRT Financial Stability Report.

US TRADE

• US stock markets were closed for Thanksgiving Day.

APAC TRADE

EQUITIES

• APAC stocks traded mixed with price action mostly rangebound amid the lack of any significant news catalysts to spur markets and the absence of a lead from Wall St due to the Thanksgiving holiday.
• ASX 200 gained with the index lifted by strength in the consumer-related and defensive sectors but with upside limited by losses in the commodity-related industries.
• Nikkei 225 was lacklustre amid pressure in bonds and as participants digested firmer-than-expected Tokyo inflation data in which Core CPI rose to its highest in four decades.
• Hang Seng and Shanghai Comp were mixed with underperformance in Hong Kong after the government extended social distancing measures through to December 14th, while the mainland bourse was kept afloat despite the deteriorating COVID situation with sentiment helped by ongoing hopes of monetary policy easing.
• US equity futures were steady (ES +0.2%) overnight amid the holiday lull stateside.
• European equity futures were uneventful with the Euro Stoxx 50 future -0.1% after cash markets closed up by 0.4% yesterday.

FX

• DXY remained lacklustre amid the holiday-shortened week due to Thanksgiving in the US and with price action also contained by resistance at the 106.00 level.
• EUR/USD notched marginal gains above the 1.0400 level with trade rangebound after a slew of comments from ECB officials provided very little incrementally, while the latest ECB Minutes noted the 75bps hike was supported by a large majority and a few members expressed a preference for a 50bps increase.
• GBP/USD was steady after reclaiming the 1.2100 status and with BoE officials remaining hawkish on inflation.
• USD/JPY attempted to nurse some of this week’s losses but with the rebound thwarted by firm Tokyo CPI data.
• Antipodeans conformed to the uneventful performance across the FX space amid the inconclusive risk tone and lack of tier-1 releases from both sides of the Tasman.
• PBoC set USD/CNY mid-point at 7.1339 vs exp. 7.1375 (prev. 7.1201).

FIXED INCOME

• 10yr UST futures traded sideways with price action contained by yesterday’s Thanksgiving holiday and with US markets also set for early closures today.
• Bund futures pulled back from this week’s highs to around the 142.00 level with trade quiet after the latest ECB rhetoric did little to shift the dial.
• 10yr JGB futures were pressured in the aftermath of the firmer-than-expected Tokyo inflation data in which Core CPI rose by its fastest pace in 40 years and with the 10yr yield sitting at the top of the BoJ's tolerance level, while an in-line to softer 40yr auction also did little to support prices.

COMMODITIES

• Crude was marginally higher as top OPEC producers reaffirmed sticking to the OPEC+ framework but with gains capped by mixed risk tone and as the EU continues its efforts to reach an agreement on the Russian oil price cap.
• Saudi and Iraqi Energy Ministers stressed the importance of working within the OPEC+ framework and reiterated further measures to ensure stability of the oil market if necessary, according to a statement.
• Spot gold eked slight gains in a continuation of the advances post-FOMC Minutes.
• Copper was firmer alongside the softer dollar and China stimulus/RRR cut hopes.

CRYPTO

• Bitcoin was lacklustre amid the mixed risk appetite with price action choppy around the 16,500 level.

NOTABLE ASIA-PAC HEADLINES

• China RRR cut for all banks is seen as likely, according to China Securities Journal.
• UK Cabinet Office instructed central government departments to stop installing Chinese-made surveillance systems in sensitive sites due to security risks, according to FT.

DATA RECAP

• Tokyo CPI YY (Nov) 3.8% vs Exp. 3.6% (Prev. 3.5%)
• Tokyo CPI Ex. Fresh Food YY (Nov) 3.6% vs Exp. 3.5% (Prev. 3.4%)
• Tokyo CPI Ex. Fresh Food & Energy YY (Nov) 2.5% vs Exp. 2.3% (Prev. 2.2%)

GEOPOLITICS

RUSSIA-UKRAINE

• Kherson regional official alleged that Ukrainian authorities are forming purge brigades in the city of Kherson that will carry out purge campaigns among civilians, according to TASS.

OTHER

• UN Human Rights Council voted to establish an investigation on human rights abuses in Iran, according to The Guardian.

EU/UK

NOTABLE EU/UK HEADLINES

• Spanish windfall tax on banks and large energy companies cleared the first hurdle, according to Reuters.