European equities could rally 10% on the back of historic fiscal stimulus, Morgan Stanley predicts

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European equities could rally 10% on the back of historic fiscal stimulus, Morgan Stanley predicts
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European stocks could jump 10% on the back of Europe's unprecedented fiscal plan, Morgan Stanley said.

The investment bank believes that the recent decision is a "game changer" for Europe.

The EU flags are seen in front of the Berlaymont, the EU Commission headquarter on May 19, 2020, in Brussels, Belgium.European equities could jump 10% on the back of a historic agreement over fiscal stimulus in the European Union, Morgan Stanley said in a note Tuesday.

The investment bank believes that the recent decision is a "game changer" for Europe, in dealing with the current economic crisis, but also in erasing some long-standing fears over disintegration. "We see scope for a further 10% outperformance from EMU [European monetary union] equities versus global peers, led by Peripheral indices ," Morgan Stanley analysts said in a note.

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