European Thematics Full Theme Ahead

Morgan Stanley highlights four core themes for European Equities in 2026: Tech Diffusion, Societal Shifts, Multipolar World, and Future of Energy. These themes are driving high stock-level dispersion and offering significant alpha potential for active investors.

Key Takeaways

• 1.AI and Tech Diffusion are driving high single-stock dispersion in Europe, creating significant alpha opportunities.
• 2.The 'Societal Shifts' theme explores the impact of AI on employment (4% net job loss in surveyed sectors) and the rise of health-focused protein consumption.
• 3.Europe is progressing toward a Savings & Investment Union (SIU) to mobilize capital for defense and infrastructure.

Table of Contents

• Key Takeaways
• European Equities Through a Thematic Lens
• European Equities: Key Charts Highlight Attractions
• European Equities: Key Themes in Charts
• Ways to Play Core Themes
• Societal Shifts
• AI Adoption and the Future of Work
• Protein Consumption: More Room to Boom
• A Picture Paints... Societal Shifts
• Tech Diffusion
• In the AI of the Storm
• Memory – How to Play the New AI Bottleneck
• Agentic Payments: New Rules, Same Rails
• A Picture Paints... Tech Diffusion
• Multipolar World
• Savings and Investment Union: Support Accelerating
• The Defence Industrial Base: Ready for Prime Time? The Data You Haven't Seen
• Stablecoins & Their Alternatives: a European perspective
• A Picture Paints... Multipolar World
• Future of Energy
• European Utilities vs US Utilities: Breaking out of the pattern?
• How Low Can TTF Go? All the Way to the US LNG Floor?
• A Picture Paints... Future of Energy
• Disclosure Section

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