Thank China's economy for record highs in U.S. stocks, one analyst says.
"China growth has been a key driver of asset prices," Keith Parker, head of global equity strategy research at Barclays, said in a Monday note titled, "China is mattering as much as politics."
Investors have mostly focused on U.S. and European political developments — and sometimes puzzled over the seemingly unrelenting push higher into record territory for U.S. stocks. But Barclay's analysis found that year-to-date performance of stocks, currencies and commodities point to one key factor: better growth in China's old, manufacturing-based economy.
"China nominal growth is at three-year highs," Parker said, while "China's fiscal stimulus and the bottom in oil [have] also helped turn the inflation backdrop" away from global worries of falling prices and slowing growth.