A stronger oil rally in the early trading hours was thwarted as U.S. markets opened today, but stocks remained resilient. The S&P 500 INDEX (INDEXCBOE:SPX) is stable despite the strong fall in oil at the open. The NASDAQ (INDEXNASDAQ:NDX) is marginally higher having gained 0.3% so far.

Canada’s loss is oil’s gain

A huge wildfire that started last week in Canada’s oil sands is likely to hit supply and ease the global oil glut somewhat, which had fueled a rally before price tanked at US market open. It is projected that the fire could trim down the Canadian output by at least 645,000 barrels per day, a number that can rise to one millions barrels a day.

European stocks bounce back

On the other hand, the Asian markets reported a mixed session as market traders digested China’s weak trade report that released over the weekend. According to which, both exports and imports of the country declined in April, building up the concerns over the Chinese economy health. Exports dropped 1.8% year-on-year, and imports slipped 10.9%, as per the data released by the General Administration of Customs.

However, unlike Asian indices, the European equities were off from their one-month lows. The optimism in the European market is attributed to the earlier oil rally that had eased worries over China’s slowdown. On the economic data front, sentiment in the Eurozone improved slightly in May.

The U.S. Dollar (CURRENCY:DOLLAR) pushed higher against the major global currencies as the Japanese Yen returned to two-week lows. Comments by the Japanese Finance Minister about possible currency intervention also led to losses.

At the same times, Gold prices eased down as the dollar gained momentum over other currencies. According to analysts, the greenback’s movement will set the tone for the yellow metals in the coming days.