World stocks rise on Iran deal, Wall St. momentum

AP and AFP

LONDON/HONG KONG–World stocks rose and oil prices fell Monday after world powers and Iran reached a deal on the country’s nuclear program and as Wall Street was set to add to its seven weeks of gains.

Sunday’s deal was the first significant progress in years to curtail Iran’s nuclear ambitions. It will reduce the risk of conflict, improve trade and could boost crude oil supplies to the global economy.

Iran agreed with the U.S., Britain, France, Russia, China and Germany to limit enrichment of uranium to 5 percent, far below the level needed for nuclear weapons. In return, it got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for an enduring deal.

“Perhaps the Iran nuclear deal, effectively setting limits to Iran’s nuclear program, has added to the buoyant risk mood,” said Stan Shamu, market strategist at IG in Melbourne, Australia.

In early European trading, Britain’s FTSE 100 rose 0.4 percent to 6,697.42 and Germany’s DAX advanced 0.9 percent to 9,300.67. France’s CAC-40 added 0.5 percent to 4,300.16.

Wall Street continued to be lifted by the Federal Reserve’s super easy monetary policy, signs of gradual improvement in the U.S. economy and rising company profits.

The Standard & Poor’s 500 closed above 1,800 for the first time Friday, capping seven straight weeks of gains. The Dow also logged a seventh week of increases.

Futures augured more gains for U.S. stocks. Dow and S&P 500 futures were up 0.4 percent and 0.3 percent, respectively.

Asian markets mostly rose Monday following another record close on Wall Street, while oil prices fell after Iran struck a deal on its nuclear program that will see eased sanctions on the oil producer. The generally positive sentiment sent the yen sinking against the dollar, while it also hit a four-year low versus the euro. Tokyo jumped 1.54 percent, or 237.41 points, to 15,619.13, its highest close since May 22. Sydney gained 0.32 percent, or 16.9 points, to 5,352.8 and Seoul added 0.49 percent, or 9.75 points, to close at 2,015.98. However Hong Kong ended virtually flat, edging down 11.83 points at 23,684.45 while Shanghai lost 0.47 percent, or 10.26 points, to end at 2,186.12.