Morgan Stanley Downgrades European Energy Stocks to Neutral as Strait of Hormuz Shipping Resumes on June 19

According to Morgan Stanley, on June 19, the bank's strategists downgraded the European energy sector rating from overweight to neutral amid declining oil prices and normalizing shipping through the Strait of Hormuz. Led by Marina Zavaclock, the research team removed six energy stocks from the bank's preferred European stock portfolio and replaced them with three bank stocks, two utilities stocks, and one copper company stock, citing that energy sectors typically underperform the broader market after geopolitical tensions peak.
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