Morgan Stanley's Wilson predicts stock volatility during debt ceiling debate.

Morgan Stanley's Michael Wilson predicts that the debate around raising the US government's borrowing limit could trigger sharp swings in equity markets, even if the debt ceiling is lifted by the so-called X-date. Wilson remains bearish in his forecast for full-year profits amid slowing economic growth, and investors are reluctant to pile into sectors such as regional banks and lower-quality cyclicals despite their recent underperformance. The impact of the impasse on US stocks has been minimal so far as investors also monitor the outlook for economic growth and corporate earnings.