Equity markets are going through a period of "short-covering," BlackRock senior director Ewen Cameron Watt told CNBC on Tuesday.
"There was always going to be a bit of a rebound in these sectors [oil and iron ore] because they have been so heavily sold down," said Watt.
"The supply side of oil is going to get tighter this year. The supply side of iron ore will get tighter in the next year and I think we're just seeing that kind of rebound."
Short-covering refers to traders trying to avoid losses after betting that a particular security would lose value.
However, Watt said, " I don't think we're about to start a super new cycle. Indeed China is cutting capacity, or trying to cut capacity this year which is again part of the story of stabilization in prices."
China's exports fell 25.4 percent on-year in February, while imports declined 13.8 percent, clocking far bigger slides than expected by analysts.