Stock markets worldwide rose modestly yesterday after a landmark nuclear deal between Tehran and six global powers left sanctions on Iran in place for now, spurring gains in energy shares, while expectations for weak corporate results capped US share gains.

Brent and US crude reversed losses which came after the nuclear deal was reached.

The deal, which is set to ease sanctions against Tehran and allow a gradual rise in its oil exports, had sent oil prices tumbling.

Brent crude was last up 81 cents, or 1.4 per cent, at $58.66 a barrel.

US crude was up $1.02, or 1.95 per cent, at $53.22 per barrel.

The rebound boosted the S&P energy index, which was last up 0.66 per cent at 545.24, while the Stoxx 600 Europe Oil & Gas Index closed up 0.84 per cent at 312.68.

Expectations for weak corporate earnings reports and data showing disappointing June retail sales in the US, along with a decline in shares of carmakers in Europe, capped equities gains.

The decline in carmakers occurred as JP Morgan cut forecasts for the Chinese auto market.

US companies are expected to report their worst sales declines in nearly six years when they post second-quarter results, while earnings are expected to have fallen 2.9 per cent, according to Thomson Reuters estimates.

MSCI’s all-country world stock index, which tracks shares in 45 nations, was last up 2.23 points, or 0.52 per cent, at 429.42.

The Dow Jones industrial average was last up 62 points, or 0.34 per cent, at 18,039.68.

The S&P 500 was up 7.91 points, or 0.38 per cent, at 2,107.51. The Nasdaq Composite was up 33.14 points, or 0.65 per cent, at 5,104.65.

The pan-European FTSEurofirst 300 index closed up 0.53 per cent, at 1,580.34.

US Treasury yields, which move inversely to prices, edged lower after the unexpected drop in US June retail sales added to speculation that tepid economic data may push back when the Federal Reserve is likely to begin raising interest rates.

Benchmark 10-year US Treasury notes were last up 7/32 in price to yield 2.40 per cent, from a yield of 2.43 per cent late on Monday.

The data increased focus on Fed chairwoman Janet Yellen’s Humphrey-Hawkins testimony to Congress today and tomorrow.

The retail sales data also halted Monday’s rally in the dollar. The dollar index, which measures the greenback against a basket of six major currencies, was last down 0.17 per cent at 96.690.

Spot gold prices were last down $2.84 at $1,154.76 an ounce.