Morgan Stanley Downgrades European Energy Stocks Due to Hormuz Agreement

BlockBeats News, June 19th, as oil prices fell and shipping in the Strait of Hormuz gradually returned to normal, a Morgan Stanley strategist downgraded the European energy sector stocks. The research team led by Marina Zavolock lowered the sector's rating from overweight to neutral, citing that after the peak of geopolitical tensions, the energy sector usually underperforms the broader market. The strategist removed six energy stocks from the European preferred stock pool, replacing them with three bank stocks, two utility stocks, and one copper company stock. Analysts stated that the European stock market has not fully digested the positive news of the resumption of navigation in the strait; investors may next turn their attention to a potential peace agreement in Ukraine.