Markets shrug off N Korean missile launch, “can go a lot higher”

Markets were mixed on Friday.

The S&P 500 rose 0.2 percent and the Nikkei 225 rose 0.5 percent but the STOXX Europe 600 fell 0.3 percent.

Markets largely shrugged off North Korea's launch of a missile over Japan.

Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Company, said that investors ignored events in Korea after previous incidents did not produce lasting declines and have “learned to buy on the dips”.

“Valuations are stretched, but I don’t believe we’re in bubble territory. The market can go a lot higher,” added Morris.

European stocks fell after Bank of England dove Gertjan Vlieghe said that “we are approaching the moment when bank rate may need to rise”.