Markets rise as global manufacturing improves

Markets rose on Monday.

The S&P 500 rose 0.7 percent, the STOXX Europe 600 jumped 2.1 percent and the Nikkei 225 surged 2.2 percent.

Markets were boosted by positive manufacturing data on Monday.

The Institute for Supply Management reported that its manufacturing index for the US rose to 54.2 in July from 52.6 in June while new orders jumped to 61.5 from 56.4.

IHS Markit’s eurozone manufacturing PMI rose to 51.8 in July from 47.4 in June.

China’s Caixin/Markit manufacturing PMI rose to 52.8 in July from 51.2 in June.

Some analysts are bullish even as they see a possible near-term correction.

“We think the most likely outcome remains a 10% correction in the broader index led by the beneficiaries before the recovery and bull market continues,” wrote Morgan Stanley chief US equity strategist Michael Wilson and his colleagues.

“Some misgivings are justified given a macro backdrop that is becoming muddied, but not muddied enough to justify bearish targets or a defensive investment strategy,” wrote JP Morgan strategists led by John Normand.