Markets rose on Monday, with US indices eking out gains to close at record highs.
A report on Monday showed that China’s GDP growth slowed in the second quarter to 6.2 percent, the lowest since 1992, but markets reacted little to it.
“The GDP figures matched market expectations to the dot,” wrote Carl Weinberg, chief international economist at High Frequency Economics.
Instead, investors may be mostly focusing on potential rate cuts by central banks.
In a note on Monday, JP Morgan's chief US equity strategist Dubravko Lakos-Bujas wrote that they are “raising our S&P 500 12-month price target to 3,200 as our upside case for equities is increasingly in play with Fed and Trump easing on policy while investor positioning/sentiment remains low”.
A stock market melt-up, however, is unlikely, according to Mark Haefele, global chief investment officer at UBS Global Wealth Management.
“While we expect modest upside for stocks in our base case, valuations and corporate fundamentals don’t point to a ‘melt-up’. Earnings growth remains subdued and multiples have only modest scope for further expansion,” he wrote.
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