Morgan Stanley: Britain Can Hold Up Better Without Europe

Morgan Stanley: Britain Can Hold Up Better Without Europe Morgan Stanley stated that Britain can hold up better without Europe. Indicating that Britain could show a better recovery than Europe. With the overlap of good news from the coronavirus (Covid-19) vaccine, there has been an upward and recovery trend in the markets. Accordingly, Morgan Stanley stated that they expect a "V" type recovery and that the UK stocks may outperform European stocks. Publishing the research report, Morgan Stanley noted that next year the FTSE 100 will outperform the MSCI Europe index. It was emphasized that the forecast in question stemmed from the increase in earnings per share, a more acceptable foreign exchange trend and cheap valuation. In addition, Morgan Stanley stated that the valuation of assets in the UK is difficult compared to their counterparts, and predicts the FTSE100 to gain 17 percent in 2021, while MSCI Europe will increase by 10 percent. Stating that a possible Brexit deal will increase the risk appetite and provide a tactical recovery in risky assets, Morgan Stanley expects the UK to recover slower than other countries in 2021 in terms of economic size. In addition, Morgan Stanley predicts that ITV, Hays, Marks & Spencer, NatWest and Taylor Wimprey will show an upward performance next year in the circular stocks examined.       Source: Bloomberg HT