Morgan Stanley downgrades European energy stocks following the Strait of Hormuz agreement

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BlockBeats News, June 19: As oil prices fall and shipping through the Strait of Hormuz gradually returns to normal, Morgan Stanley strategists have downgraded the stock rating for Europe’s energy sector. The research team led by Marina Zavolok lowered the sector rating from Overweight to Neutral, citing that after geopolitical tensions peak, the energy sector typically lags the broader market. The strategists removed six energy stocks from the European preferred stock pool and replaced them with three bank stocks, two utility stocks, and one individual copper company stock. Analysts said European stock markets have not yet fully priced in the positive impact of the Strait of Hormuz resuming shipping; investors may next turn their attention to a potential peace agreement in Ukraine.
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