A calming of trade waters put oil in the spotlight as prices surged on a combination of supportive factors. The US dollar resumed its rise, and share markets stabilised, and in many cases regained recently lost ground. Futures traders seemed caught in the headlights, and are indicating a mixed start to Asia Pacific trading.

Looming US sanctions against buyers of Iranian oil, disruption to Libyan supply and surprisingly high US demand catapulted crude oil prices higher. Iron ore caught the updraft, but industrial metals largely ignored the positive moves. Combined with a further fall in gold prices these factors should make resource stocks a focus in today’s session.

China industrial profits information will drop mid-session today ahead of UK housing and US durable goods orders tonight. However investors are likely to wait for important global inflation data due Friday night before making significant changes.

Trade fears are potentially the greatest risk to market health in the short term. The view that the recent escalation is a negotiating tactic gives investor comfort. However unintended consequences could see cascading restrictions that are hard to reverse. Economic damage despite good intentions remains a threat.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.