Europe’s indexes may pull ahead

EUROPE’S benchmark stock indexes have lagged comparable US measures this year, but they may soon start to pull ahead.

The reason: exporters in the region, including Royal Philips Electronics NV and Siemens AG, stand to benefit from a rising dollar. The US currency set a four-month high against the euro last week.

Morgan Stanley’s European strategists, ranked No 1 in a survey by Institutional Investor magazine, told clients to own local stocks rather than US shares unless the dollar starts falling. Government moves such as planned tax cuts in Germany and changes to France’s pension system may spur economic expansion in the region, they said.