Key Takeaways
- West Texas Intermediate (WTI) crude oil declined below $59.50, trading around $59.25, amidst a prevailing bearish outlook driven by renewed U.S. Dollar demand and persistent oversupply concerns.
- The cryptocurrency market experienced a significant sell-off, with AB (AB), Zcash (ZEC), and Monero (XMR) emerging as top losers, extending previous losses with AB down nearly 6% and Zcash falling below $350.
- Costco Wholesale Corp. (COST) has joined a growing number of companies suing the Trump administration to secure eligibility for tariff refunds, highlighting inflationary pressures faced by businesses.
- Hong Kong banks are expected to absorb commercial real estate asset quality pressures into 2026, supported by solid capital positions, despite weak demand for office and retail properties.
- China's 3SBio is seeking US$400 million in Hong Kong to bolster its drug pipeline, while Indian bond yields saw a slight increase and the Rupee depreciated against the U.S. Dollar.
Energy Markets Face Bearish Headwinds
West Texas Intermediate (WTI) crude oil prices have fallen below the $59.50 mark, currently trading around $59.25 in Tuesday's Asian session. This decline is attributed to a prevailing bearish outlook, fueled by renewed demand for the U.S. Dollar and persistent concerns about oversupply in the market, despite OPEC+'s decision to pause planned supply increases. Technical analysis indicates a bearish bias, with immediate resistance at $60.80 and support levels at $59.24 and $57.69.
Crypto Market Experiences Broad Sell-Off
The cryptocurrency market is undergoing a significant sell-off, with several major digital assets extending their losses. AB (AB), Zcash (ZEC), and Monero (XMR) are among the top performers on the downside. AB saw a nearly 6% drop on Tuesday, adding to a 7% decline from the previous day, and is now testing the crucial $0.00500 psychological support level. Similarly, Zcash plunged below $350 after a 19% loss on Monday, with an additional 3% decrease on Tuesday, pushing it towards the $300 support. Momentum indicators for both cryptocurrencies are flashing sell signals, with Zcash's 4-hour Relative Strength Index (RSI) at 19, indicating oversold conditions and intense selling pressure.
Costco Joins Tariff Lawsuits Against Trump Administration
Costco Wholesale Corp. (COST), the largest warehouse club chain in the U.S., has become the latest major company to file a lawsuit against the Trump administration regarding its tariff policy. The lawsuit, filed on November 28, aims to ensure Costco's eligibility for tariff refunds should the U.S. Supreme Court ultimately declare the tariffs illegal. Costco is reportedly facing inflationary pressure due to these tariffs and stands out as the only retailer among dozens of companies, including Revlon and Kawasaki Motor, that have challenged the administration's use of economic emergency powers to impose levies. The Supreme Court heard arguments on November 5 and has fast-tracked the case, though a ruling date has not been announced.
Asian Markets See Biotech Fundraising and Banking Sector Scrutiny
In China, biotech firm 3SBio is looking to raise US$400 million through a share placement in Hong Kong. The funds are intended to advance the company's clinical research efforts in both China and the U.S., as well as expand the market reach of its cancer and hair-loss drug pipelines.
Meanwhile, Fitch Ratings has indicated that Hong Kong's banking sector is well-positioned with solid capital to absorb ongoing asset quality pressures stemming from local commercial real estate (CRE) exposure. These pressures are expected to persist into 2026 due to weak demand for office and retail properties and rising vacancy rates. Some banks, such as Bank of East Asia (BEA), have already seen their impaired loan ratio for Hong Kong CRE climb to approximately 7.5% from 6% at the end of 2024.
Bond Markets and Currencies Show Mixed Movements
The 10-year Japanese Government Bond (JGB) yield decreased to 1.860%, down 1.5 basis points. This follows a period where the yield had held steady at 1.88% on December 2, having risen 0.22 points over the past month. The USD/JPY currency pair reacted by gaining 0.1%, reaching 155.61, after Japan's 10-year bond sale.
In India, the 10-year benchmark government bond yield registered at 6.5783%, a slight increase from its previous close of 6.5732%. Concurrently, the Indian Rupee opened at 89.70 against the U.S. Dollar, marking a depreciation from its previous close of 89.54. This follows a period in late November when the Rupee had strengthened to 89.07 against the U.S. Dollar, after intervention by the Reserve Bank of India (RBI) to stabilize the markets and prevent rapid depreciation.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.