Markets mixed, “more susceptible to corrections”

Markets were mixed on Wednesday.

The S&P 500 fell 0.2 percent but the STOXX Europe 600 rose 0.1 percent.

in Asia, the Nikkei 225 fell 0.4 percent but the Shanghai Composite rose 0.4 percent.

US stocks fell despite strong earnings reports from retailers.

Goldman Sachs’ Jeff Currie noted “increasing margin pressures in the wake of supply chain issues and labor shortages” among the retailers while Keith Buchanan, portfolio manager at Globalt Investments, said that “the costs of running those businesses are outpacing the strong consumer”.

In Europe, the European Central Bank warned in its biannual stability report released on Wednesday that valuations in many asset markets are becoming stretched.

The ECB said in the report that “risk-taking by non-banks and elevated sovereign and corporate debt are building up” and equity and risky asset markets are becoming “more susceptible to corrections”.