The sell-off in oil damped demand for some metals yesterday in London and New York. Traders in China are worried there might be a chain reaction of funds selling metals to take profits.

Before the Easter vacation there was short-covering in London as next Wednesday is also the settlement day there, so after the vacation there should be more stop-loss buying.

In China, purchases from major consumers, including power cable makers, are still normal at this price level. Buyers are doing futures to hedge price swings and help reduce losses made on the spot market.

The current oil price couldn't represents the relations between supply and demand, ... speculation has played a more important role in the increase of oil prices.

We still have a positive outlook on commodity stocks, for both oil and metals. Demand is continually rising, while the supply side is not following through.

For now the rate hike will have mostly a psychological impact on the market. Investors will probably use this as a reason to push prices down before re-entering the market at lower levels.