Markets were mixed on Wednesday.
The S&P 500 rose 0.1 percent to another record high while the Nikkei 225 also rose 0.1 percent.
However, the STOXX Europe 600 fell 0.1 percent after officials in Catalonia announced their intention to declare independence from Spain.
The relentless record-breaking run of the US stock market has some analysts suggesting that it may be on the verge of a melt-up.
“We make the case that despite the Fed’s intent, we’re on the verge of being in a melt-up stage, fueled by excessive credit and a timid Fed,” wrote technical analyst Jeff deGraaf, chairman of Renaissance Macro Research, in a note on Wednesday.
Similarly, Jeffrey Saut, chief investment strategist at Raymond James, said on Tuesday that the S&P 500 “now appears to be involved in a melt-up”.
However, others note that the US stock market's rise has taken place against the backdrop of a weaker US dollar.
Robert Michaud, chief investment officer at New Frontier Advisors, wrote in a research report that “the dollar has fallen relative to other currencies” and that on a dollar-adjusted basis, the S&P 500 was “significantly below” the high hit in the first quarter of the year.
No comments:
Post a Comment