Stocks rise as markets monitor Iran
A global gauge of stock markets rose as investors tracked the interim peace deal between Iran and the US, even as oil prices also rose after attacks from both sides underscored the risk of escalation.
Iranian and US technical teams working on the deal are expected to meet in Doha in the coming days, a source told Reuters, after weekend strikes threatened to derail the accord.
Both Brent and WTI oil were higher on the day but remained sharply lower for the month.
Oil rises as supply risks remain
At the settlement, Brent crude futures rose US$1.16, or 1.61 per cent, to US$73.15 a barrel.
US WTI crude gained US$1.52, or 2.2 per cent, to US$70.75 a barrel.
The Dow Jones Industrial Average rose 306.33 points, or 0.59 per cent, to 52,182.44, the S&P 500 gained 86.36 points, or 1.17 per cent, to 7,440.38 and the Nasdaq Composite rose 522.53 points, or 2.07 per cent, to 25,820.14.
Morgan Stanley’s gauge of stocks across the globe rose 0.89 per cent.
Markets focus on inflation and jobs
Despite oil’s price decline over the month, inflation has jumped in the US, while rising expectations of a Federal Reserve rate hike have lifted the US dollar.
The dollar index was last down 0.27 per cent to 101.09, just below the 13-month high it touched last week.
The main focus for the US economy this week will be Thursday's June jobs report.
Three consecutive months of stronger-than-expected payrolls have reinforced the Federal Reserve's hawkish shift, though any cooling in the labour market could prompt a reassessment.
Investors are pricing in at least one Federal Reserve rate hike this year, a sharp reversal from expectations of two rate cuts before the Iran war.
Dollar weighs on gold
The Japanese yen weakened to its lowest level against the US dollar since 1986.
The stronger US dollar weighed on gold, which fell 1.8 per cent to US$4,014.59 an ounce.
The precious metal is on track for a 14 per cent decline in the second quarter, its biggest quarterly fall since 2013.
