Markets rise despite elevated valuations and political uncertainty

Markets rose on Tuesday.

The S&P 500 rose 0.2 percent to a record high, the STOXX Europe 600 rose 0.2 percent for its ninth consecutive gain and the Nikkei 225 rose 1.0 percent.

“Data have been pretty strong over the past few days, and that’s giving a boost to markets around the globe. Valuations are elevated, but you can justify them,” said David Joy, chief market strategist at Ameriprise Financial.

European stocks rose despite uncertainty after a referendum in Catalonia, Spain on its independence was marred by violent clashes between voters and police.

“Politics has clearly overshadowed the economic improvement in the eurozone, and this will likely remain the case for the rest of the week,” said Hussein Sayed, chief market strategist at FXTM.

Still, some believe that stocks in Europe still have room to push higher.

“Core Europe remains one of the preferred markets for us and one we believe offers attractive opportunities for investors over a multi-year time period,” Jeff Donlon, managing director of global strategies at investment management firm Manning & Napier.