Morgan Stanley predicted bad news for the European Stock.

In the middle of the season where the forecasts for 2010 are released, Morgan Stanley is seeing something different than the optimistic approach of the majority. The company predicted that the European Stocks could close the 2010 with 5% lower levels than nowadays. Before of this, they could reach additional improvements by 10%.

In a different approach than Morgan Stanley The Investment firms are returning to rely on increases by until 10-15% in the European Stock this incoming Year.

Morgan Stanley calculates that in the next months the rally begun in March will continue, since then, the European Stock market is accumulating profits of 50%.

If the Forecasts of Morgan Stanley are correct, in middle-2010 The European MSCI index, will reach a 10% of additional revaluation and a maximum of 1200 points.

But the forecasts of Morgan Stanley also see a correction at the end of 2010, ”The quit of the stimulus will be a very dangerous period for the economy and the markets”, warned the company. This process of quit will cause decreases in the MSCI, until close the 2010 with 1030 points, near by 5% lower than the current levels in the European Stock

In their worse forecasts, Morgan Stanley don’t discard a fall of the MSCI to the 950 points, 12% lower than nowadays.

Morgan Stanley also forecasts a bad landscape for the stock of London. By the end of 2010 close with 500 points with the Ftse 100, a 5% lower than nowadays.