Markets were focused on Iran and US exit of nuclear deal - ANZ

Analysts at ANZ explained that markets were focused on headlines surrounding the US-Iran nuclear deal and associated sanctions overnight. 

Key Quotes:

"The official outcome is the US will exit the deal that was struck in 2015 and reinstate sanctions. These sanctions will target its energy, petrochemical and financial sectors. Those doing business in Iran will be provided a period of time to wind down operations in or business involving Iran – failure to do so will risk sanctions."

"The end result for markets was the USD continued to strengthen, US treasury yields pushed 1-2bps higher (both aided by positive data prints too), but US equities indices fell 0.3%."

"Pre-announcement oil prices traded a 4% range on speculative headlines whether or not the US would reinstate sanctions – at the time of writing WTI was hovering just below USD70/bbl."

"In Europe higher oil prices and stabilising German activity pushed 10-year yields 3-5bps higher, but the major bourses finished flat to 0.3% lower."