* Oil dips on Iran nuclear deal
* World share markets gain, Wall St edges higher
* Yen drops to six-month low vs dollar as Nikkei surges
By Herbert Lash
NEW YORK, Nov 25 The deal to curb Iran's nuclear
program prompted oil prices to fall and world equity markets to
rise on Monday as investors priced in an easing of Mideast
political tensions and the lift it could give to global economic
The breakthrough accord reached over the weekend in Geneva
halts Iran's most sensitive nuclear activities and gives it some
relief from crippling sanctions, but does not allow the OPEC
member to boost oil sales for six months.
The interim pact - aimed at easing a decades-old stand-off
between Iran and the United States - won the critical
endorsement of Iranian cleric Supreme Leader Ayatollah Ali
Khamenei. France, Britain, China, Russia and Germany also agreed
to the accord.
Despite tough work ahead to transform the agreement into a
permanent solution, it was enough to ease oil supply fears and
send Brent crude down $1.69 to $108.36. Crude prices
pared losses after hitting a session low of $108.05 on
expectations markets will not be awash in new supply.
"The deal is a step in the right direction, but it's still
very early days," said Amrita Sen, chief analyst at consultants
Energy Aspects in London.
"That's why, after the knee-jerk reaction, the market is
stabilizing. It's realizing, at least in the next few months,
there's not going to be a substantial increase in oil exports."
Equity markets in Europe also pared some gains and Wall
Street edged higher.
Global equity markets, as measured by MSCI's all-country
world index of 45 countries, rose 0.13 percent,
while the pan-European FTSEurofirst 300 of leading
regional shares was up 0.41 percent.
The Dow Jones industrial average rose 31.60 points,
or 0.20 percent, at 16,096.37. The Standard & Poor's 500 Index
was up 0.78 points, or 0.04 percent, at 1,805.54. The
Nasdaq Composite Index was up 1.78 points, or 0.04
percent, at 3,993.43.
Energy shares were by far the weakest on the day,
dropping 0.83 percent. Almost all 44 components of the index
were lower. Among the most active names, WPX Energy Inc
fell 2.3 percent to $18.53, and Newfield Exploration
lost 2.90 percent to $29.16.
"Less tension in the Middle East is always a positive, and
any drop in gas prices will essentially act as a tax break for
consumers going into the holiday shopping season," said Jeff
Duncan, chief executive of Duncan Financial Management in St.
Louis. "This is a real benefit for the economy."
U.S. trading is expected to be light this week, with markets
closed on Thursday for the Thanksgiving holiday and early on
In Japan, a major oil importer, shares got an extra boost
from a weaker yen to surge 1.5 percent. The Nikkei average has
gained almost 11 percent in a little more than two weeks.
The Japanese currency, which typically falls when share
prices rise, had touched a sixth-month low of 101.91 yen to the
dollar as investors sold it to buy higher-yielding assets
The dollar last traded up 0.36 percent at 101.63 yen.
The fall in oil prices weighed on most commodity-linked
currencies, with the Canadian dollar dropping to a 4
1/2-month low of C$1.0584. Against an index of six major
currencies, the dollar was 0.31 percent higher.
Prices of U.S. Treasuries edged up slightly as housing data
proved weaker than expected.
The 10-year U.S. Treasury note rose 4/32
in price to yield 2.7373 percent.
Contracts to buy previously owned U.S. homes fell for a
fifth straight month in October, hitting a 10-month low and
adding to signs of cooling in the housing market.