Morgan Stanley says higher oil prices could boost these 2 global real estate stocks

The recent increase in oil prices could provide a boost to London's prime office real estate market, according to Morgan Stanley. The Wall Street bank said that historically Middle Eastern sovereign wealth funds have bought up landmark buildings in central London not too long after a steady and sustained rise in crude prices. According to their analysis, higher oil prices tend to correlate with increased demand for top-tier commercial properties.

The International Monetary Fund has estimated that the GCC-member Saudi Arabia's government budget breaks even at about $80 a barrel. When oil prices rise above this threshold, the excess profits are invested by its sovereign wealth fund, PIF, in assets around the world, including tech stocks. Morgan Stanley says that in the past, a similar rise in oil prices has preceded strong 12-month share price performance for London office REITs .

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This nutritional snack company has a leg up on competitors, Morgan Stanley says in upgradeA diverse product offering could provide this company an edge over market competitors, according to Morgan Stanley.
Source: CNBC - 🏆 12. / 72 Read more »

Morgan Stanley says buy these defensive growth stocks as economy disappointsThe firm conducted a defensive growth screen of stocks that it said have shown relative strength both year-to-date and more recently.
Source: CNBC - 🏆 12. / 72 Read more »