Digital assets under pressure after PBoC statements. Oil prices jump amid rising geopolitical risks

On Monday, the Dow Jones (US30) fell by 0.90%, the S&P 500 (US500) dropped 0.53%, and the Nasdaq (US100) closed 0.38% lower. Investors adopted a cautious stance ahead of key macro data this week, including the delayed September PCE inflation report and the upcoming FOMC decision. The tech sector saw volatility, while retail stocks showed resilience thanks to the holiday season momentum: Home Depot and Walmart posted gains. Manufacturing data pointed to further weakness: the ISM Manufacturing PMI fell to 48.2 in November 2025, the lowest in four months and below expectations of 48.6. The sector has contracted for nine consecutive months, with the pace of decline accelerating compared to September (48.7).

Selling pressure intensified on digital assets. Bitcoin fell more than 6%, dropping below $85,000 and extending the decline that began in November when it first broke under $90,000. Sentiment worsened after the People’s Bank of China (PBoC) declared digital currency activities illegal. This triggered a sharp drop in digital assets company stocks on the Hong Kong exchange, while Ethereum and Solana fell more than 8% and 7% respectively, fueling a global digital assets sell‑off.

European equities mostly declined on Monday. Germany’s DAX (DE40) fell by 1.04%, France’s CAC 40 (FR40) closed 0.32% lower, Spain’s IBEX 35 (ES35) rose by 0.11%, and the UK’s FTSE 100 (UK100) ended 0.18% lower. Airbus shares dropped 5.7% after an intraday plunge of more than 10% due to a new quality issue affecting dozens of A320 aircraft, despite most planes with prior software glitches already being modified.

On Tuesday, WTI prices traded around $59.3/barrel, stabilizing after a gain of more than 1% in the previous session. Support continued from geopolitical risks threatening global oil supplies and the latest OPEC+ production decision. Tensions between the US and Venezuela escalated after President Donald Trump threatened to treat Venezuelan airspace as closed.

The US natural gas prices kept rising amid cold weather and strong LNG exports. In early December, US natural gas futures surpassed $4.8/MMBtu, hitting a three‑year high and extending November’s 15% rally. Severe cold from December 3-7 across the Northeast and Great Lakes boosted demand, with projections pointing to below‑normal temperatures in the coming weeks. Storage withdrawals of 11 bcf in the week ending November 21 confirmed a tightening supply‑demand balance.

Asian markets traded mixed yesterday. Japan’s Nikkei 225 (JP225) fell by 1.89%, China’s FTSE China A50 (CHA50) rose by 0.77%, Hong Kong’s Hang Seng (HK50) gained 0.67%, while Australia’s ASX 200 (AU200) closed 0.44% lower. On Tuesday morning, the Hang Seng rose to 26,218, extending the prior session’s gains. Sentiment improved on expectations that weak November PMI data may prompt new stimulus measures ahead of next week’s Central Economic Work Conference. Fresh data also supported the market: Hong Kong retail sales in October posted the strongest growth since late 2023, reflecting a steady influx of tourists.