Markets higher as China credit rating cut, US stocks getting overbought

Markets were mostly higher on Wednesday.

The S&P 500 rose 0.3 percent, the STOXX Europe 600 rose 0.1 percent and the Nikkei 225 rose 0.7 percent.

China's Shanghai Composite Index tumbled early in the day after Moody’s Investors Service cut its rating on the country’s debt but recovered to end the day 0.1 percent higher.

In the US, stocks rose despite the release by the Federal Reserve of the minutes of its monetary policy meeting in May showing broad agreement among officials to shrink its balance sheet.

Indeed, Thomas Kee Jr noted that volatility in the US stock market has been low even as it is coming close to being overbought.

“One of our key indicators, what we call the Sentiment Table, is on the verge of saying the U.S. stock market will likely stall and then fall,” he wrote.