Morgan Stanley's Sheets Expects Euro to Push Lower

The video discusses the euro's valuation challenges and its low yield compared to the dollar, predicting further decline. European equities have derated but face potential earnings downgrades. The energy shock's impact on European markets is uncertain, with forward earnings showing growth despite potential recession risks. The market may need to adjust risk premiums due to this uncertainty.

What factors contribute to the uncertainty in the European markets?

What potential scenario is suggested for Europe in the coming year?