None of the markets demonstrated such extensive investors’ money outflow as European market this year. This is why Morgan Stanley recommends investors to take a closer look at stocks in Europe, Bloomberg writes.

Last week European funds demonstrated 25th week of outflows. As a result, according to Bank of America Merrill Lynch estimates, investors took $40 billion out of European stocks. While American equities observed money inflows, shares of the region suffered from trade and political tensions. Recent worrying signal came from Italy and new financial plan of government.

Morgan Stanley sees Italy as a major risk for market in Europe today, but according to the analytics of the company, this threat was already taken into stocks valuations.

Morgan Stanley views another round of value stocks growth by the end of this year. Index MSCI Europe Value fell this year by 6%, while Stoxx Europe 600 Index grew by 2%. Analytics point out to undervaluation of banking sector stocks despite of improvements in some factors driving this sector.