Morgan Stanley Flags Stock-Pickers Market Amid European Equities Pause

Morgan Stanley now sees a stock-pickers market for European equities, with choppy trading and elevated earnings dispersion during the current season stalling index momentum after a recent rally. The firm initially warned of a tactical pause interrupting the rebound, while remaining constructive medium-term, but latest commentary highlights sector divergences: energy, banks, utilities, and telecoms as outperformers versus risks in luxury, autos, and consumer staples. Overdone optimism on Strait of Hormuz resolution adds vulnerability. IEUR ETF last at $74.10, down 2.20%.