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World’s Best Rally Has Morgan Stanley to Newton Eyeing Europe

  • Euro Stoxx 50 beating all major regional benchmarks in 2021
  • Ramp-up in vaccinations, cyclical sectors attract investors
City Commuters As France Hopes For Milder Lockdown Economy Hit
Photographer: Benjamin Girette/Bloomberg

For so long the laggards of global equity markets, European stocks are back in favor and with the likes of Credit Suisse Group AG and Morgan Stanley joining an increasingly bullish chorus, investors are taking note.

The Euro Stoxx 50 Index of eurozone blue-chips is up 13% so far in 2021, outperforming the S&P 500 in the opening five months of the year for the first time since 2017 and topping all other major regional benchmarks. That’s coincided with a recent pick-up in inflows into European equity funds, while the latest Bank of America Corp. global fund manager survey showed that euro-area stocks are now the biggest regional equity overweight.