Investors not willing to bet on a long-term turnaround in stocks could look to oil, one analyst told CNBC, as a near $30 jump is due. Banks may also be attractive as they are fundamentally sound, another expert said.
Brent Bounce Heading to $80
Oil is extremely oversold and due to bounce back to around $80 per barrel on the London Brent contract over the next two weeks, Edward Loef, technical analyst from Theodoor Gilissen Bankiers, told CNBC.
"On a weekly basis we are very oversold, we haven't seen these oversold levels in at least 10 years, so you can expect a bounce from this two-thirds retracement and I think the next two weeks will show a retracement to $80," Loef said.
A two-thirds retracement from highs often marks a trend reversal, Loef added.
The Brent oil contract typically tracks movements in New York light, sweet crude and hovers within one or two dollars of it.
But Jonathan Kornafel, director of Asia Hudson Capital Energy, disagrees. Oil's recent climb back to above $50 a barrel will only be a temporary rise, Kornafel told CNBC.
Falling demand will likely drive crude down to $40 by January, he said.
Deeper OPEC Cut?
Some OPEC members may seek large supply cuts to support prices, says John Vautrain, director & VP at Purvin & Gertz, speaking to CNBC's Maura Fogarty and Steve Sedgwick.
Banks are Fundamentally Sound
Banks are well capitalized right now, but financial stocks will continue to be hammered due to market jitters. Cyrus Daruwala, managing director of Asia Pacific at Financial Insights, sheds light on the health of Asian banks.