Market update: Iran nuclear pact hits oil prices and boosts markets – 25.11.2013

Source: Henderson Global Investors

On Friday, Wall Street advanced higher (S&P 500 +0.5%, Dow Jones +0.3%). The market’s fear gauge, the CBOE Volatility Index fell as the positive mood following Thursday’s upbeat weekly unemployment report and support for Janet Yellen’s nomination as the next head of the Federal Reserve continued. In tech news, Intel Corp. announced that it anticipates unit sales for PCs will fall to “‘low single-digit” growth next year. In the lead up to Thanksgiving with bond and equity markets closed on Thursday and partially closed on Friday, market activity is likely to be slow.

A historic deal with Iran to curb its nuclear programme was inked on Sunday in return for sanction relief on oil. This has led to negative pressure on crude oil prices. In Japan, investors are hoping for a continuation of the Bank of Japan’s accommodative monetary policy. Overnight, a weaker yen has caused the Nikkei 225 to advance to a six-month high, up 1.5%. Turning to European markets, stronger risk appetite is lifting the FTSE Eurofirst 300 and FTSE 100 higher (+0.5%, +0.4% respectively) at the time of writing.