After hitting a six-week high on Monday, markets tumbled in early trading as investors paused to take a closer look at recent data. Both the euro and sterling fell against the dollar and oil, despite rallying earlier in the day, was off by 2 percent by day’s end.
On Monday, oil touched $82 a barrel for the first time in two months, but slid to $80.22 as analysis showed that US crude inventories continue to grow.
“Forecasts of yet another build in U.S. crude stocks show the disconnect between the fundamentals of oil supply and demand, which are quite bearish, and hopes of economic recovery, which are bullish,” said Commerzbank analyst Carsten Fritsch.
“But the market doesn’t seem to want to hear negative news for long and tends to react more strongly on the upside. It is two steps upwards, one step down at the moment.”
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