Morgan Stanley is backing developed European markets to be the strongest performers over the next two years, and has identified 30 emerging market stocks set to benefit. 

EU nations got off to a sluggish start on vaccine rollouts and their economic recoveries compared to some of their global peers, with multiple countries reintroducing lockdown measures early in the year. But many analysts now see the continent as offering the strongest growth prospects as the recovery gathers steam. 

In its Global Exposure Guide, published Monday, the Wall Street investment bank set out its regional preferences in order as Europe, Japan, emerging markets and the U.S. Indeed, Europe was among the few regions where Morgan Stanley economists projected stronger GDP growth in 2022 than 2021. 

"We expect the region will continue to be a relative beneficiary of global reflation trends and rising bond yields," the report said.  

"In addition, the EU recovery fund will launch in 2H21, which will provide strong support to economic growth over the next few years." 

Here's how Morgan Stanley intends to gain European exposure through emerging markets: