Morgan Stanley Strategist Sees European Stocks Falling 10% This Summer
- Strategist sees near-term equity slump followed by rebound
- Downgrades financials sector to neutral and upgrades pharma
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European stocks may drop as much as 10% over the next few months.
That’s the view of Morgan Stanley strategists led by Graham Secker, who expect the MSCI Europe Local Index to slump over the summer as economic growth slows and market liquidity shrinks, before rebounding again toward the end of the year.