Morgan Stanley: EU Auto Suppliers Up 6%

Morgan Stanley notes EU auto suppliers outperformed after energy crises, with the STOXX:SXAP index up 6% on US‑Iran ceasefire news.
Supplier stocks, typically hit hardest during energy shocks, become top beneficiaries once crises resolve, while OEMs have less resilience than tire makers.
Tire makers, less cyclical due to replacement demand, rebounded strongly, though the Russia‑Ukraine war caused a temporary underperformance.
Morgan Stanley cautions that limited current drawdowns may mask larger future impacts if oil prices stay high.