Morgan Stanley downgraded global equities and upgraded cash and US government bonds, as investors shun risk in favour of safe-haven assets due to mounting uncertainty stemming from the Middle East war. The Wall Street brokerage cut its rating on global equities to "equal weight" from "overweight", while raising US Treasuries and cash to "overweight" from "equal weight." ADVERTISEMENT"Uncertainty around magnitude and duration of oil supply disruption means outcomes for risk assets have become increasingly asymmetrical," Morgan Stanley strategists said in a note on Friday. Still, Morgan Stanley retained a preference for US stocks compared to other regions, given higher earnings-per-share growth. Fund flows to US equities and bonds have overtaken the rest of the world since the Middle East conflict began last month, with investors "looking to US assets as a more defensive market again," Morgan Stanley said.

Source: The Telegraph March 30, 2026 12:10 UTC