Morgan Stanley's chief cross-asset strategist, Andrew Sheets, spoke with Bloomberg TV

Sheets comments' on Europe says that "the political situation looks relatively good by the standards of the past five years, the economy is very strong, the central bank will have an easier time than others in remaining a bit more dovish, and both the currency and the stock market are cheap".

He also notes that the headwind of a stronger EUR will be outweighed by three tailwind measures:

  • Banks are finally becoming profitable again
  • Energy sector is benefiting from a large rise in commodity prices
  • Europe has a large exposure to emerging markets, which are growing