Thursday, 25 February 2016

US stocks reverse losses with oil

US stocks endured a volatile session on Wednesday before finishing with a gain.

The S&P 500 rose 0.4 percent, rebounding from an earlier decline of as much as 1.6 percent.

Stocks moved with oil. West Texas Intermediate oil futures fell 3.7 percent before rebounding to show a gain of 0.9 percent.

European stocks did not enjoy the benefit of the rebound. The STOXX Europe 600 fell 2.3 percent for the day.

Earlier on Wednesday, the MSCI Asia Pacific Index fell 0.9 percent.

The sharp rebound in oil on Wednesday perhaps illustrates the point made by Vikram Kumar, a money manager at London-based TT International, that shorting oil is a “dangerous trade”.

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