Morgan Stanley: European investors hope to look beyond AI.

Morgan Stanley analysts wrote that European stock investors are looking to expand their holdings beyond AI-related stocks. Analysts at Morgan Stanley suggest that investors should consider diversifying their investments into stocks that do not rely on AI and stocks that can provide returns to reduce portfolio volatility. Furthermore, they suggest that investors should hold stocks with improving fundamentals, such as those benefiting from the reopening of the Hormuz Strait. "Europe offers ample diversification opportunities, improving fundamentals, and structurally rising stock dispersion." Morgan Stanley analysts believe that stocks such as UK defense group Rolls-Royce and British Airways' parent company IAG will benefit from the reopening of the strait.