Morgan Stanley's senior portfolio manager Andrew Slimmon highlighted on CNBC that Japanese and European stock markets are beginning to show positive momentum, driven by upward revisions in earnings estimates. This shift is significant as it contrasts with the previous perception that these markets lag behind the U.S.
Slimmon noted that the Japanese stock market's performance this year is largely attributed to these revisions, which are also evident in the European banking and defense sectors. He emphasized that the current market environment, characterized by a narrow breadth in U.S. equities, does not necessarily indicate a negative outlook, as the overall earnings story remains strong.
Despite the Federal Reserve's recent interest rate hike, Slimmon expressed optimism about the market's potential for growth as investors begin to recognize the improving earnings landscape