Shares rise on rebound in oil prices; dollar slips

Tue Jul 14, 2015 4:44pm EDT
 
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By Sam Forgione

NEW YORK (Reuters) - Stock markets worldwide rose modestly on Tuesday after a landmark nuclear deal between Tehran and six global powers left sanctions on Iran in place for now, spurring gains in energy shares, while expectations for weak corporate results capped U.S. share gains.

Brent and U.S. crude reversed losses which came after the nuclear deal was reached. The deal, which is set to ease sanctions against Tehran and allow a gradual rise in its oil exports, had initially sent oil prices tumbling.

Benchmark Brent crude futures settled up 66 cents, at $58.51 a barrel. Prices had fallen almost $2 earlier. U.S. crude futures finished up 84 cents at $53.04 after declining earlier to $50.38.

The rebound boosted the S&P energy index, which ended 0.84 percent higher, while the STOXX 600 Europe Oil & Gas Index closed up 0.84 percent. Healthcare stocks also rallied, with the S&P 500 health index ending 1 percent higher.

"When investors took a closer look at the terms of the (nuclear) agreement, they realized it would not lead to an immediate increase in supply," said Wayne Lin, portfolio manager at QS Investors in New York. "That led to oil prices and oil stocks moving higher."

Expectations for weak corporate earnings reports and data showing disappointing June retail sales in the United States, along with a decline in shares of auto makers in Europe, capped equities gains.

U.S. companies are expected to report their worst sales declines in nearly six years when they post second-quarter results, while earnings are expected to have fallen 2.8 percent, according to the latest Thomson Reuters estimates.

MSCI's all-country world stock index, which tracks shares in 45 nations, was last up 2.44 points, or 0.57 percent, at 429.63.   Continued...

 
A trader works on the floor of the New York Stock Exchange (NYSE) July 14, 2015. REUTERS/Brendan McDermid