European value stocks have yet to price in the full extent of the surge in government bond yields. While cheaper equities have been outperforming their counterparts with stronger profit outlooks over the past weeks, they remain about 10% from their relative high reached in March, according to Morgan Stanley strategists. In the fourth quarter value stocks might get a boost from the broadening of the rally to cyclical shares if global economic growth concerns subside, says Morgan Stanley’s Graham Secker.