Markets get mixed reactions over Iran nuclear deal

Published July 16th, 2015 - 01:24 GMT
Al Bawaba
Al Bawaba

Global markets got no boost from the accord between Iran and world powers on Thursday; the euro declined but the Turkish lira moved higher.

In Asia, China stocks dropped after several days of gains, despite a report that China's GDP had risen to 7 percent growth, a stronger performance than had been expected by analysts. 

Hong Kong's Hang Seng was down 0.4 percent; the Shanghai Composite Index fell 2.4 percent.

Japan's Nikkei was flat with a modest 0.4 improvement, but Seoul's Kospi rose 0.5 percent.

European stock futures pointed to a modest decline at open, as did US futures.

The euro declined against the dollar to about 1.10. Concerns about the implementation of the Greek bailout accord, announced on Monday, weighed on the single currency.

However, the Turkish lira ran countertrend, gaining to about 2.63 against the dollar. All eyes in Turkey are on an unemployment report to be released on Wednesday morning.

The price of oil rose on Wednesday. The Benchmark Brent oil price was up 66 cents, to $58.51 a barrel. Analysts said that traders were heartened by the Iran accord, because it became clear that Iranian oil supplies would not reach the global market for a long period.

Emerging market stocks were lower, ahead of a speech by Federal Reserve President Janet Yellen on Wednesday that was expected to indicate an interest rate rise might take place sooner than had been previously expected.

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