The wave of sales that weighed down the European stock exchanges in recent sessions is not destined to last and prices should rise again in the next three months. Morgan Stanley analysts write it, underlining that “the current correction is comparable in size to the average correction of the last 40 years”.
Furthermore, according to the study, “these corrections tend to follow a 'V' movement with strong recovery from the lows. While markets could remain volatile in the short term, we think European equity markets will rally over the next three months as we do not believe the ongoing economic weakness in China and emerging countries will drag the European economy down”.
