A note on Monday from Citi, downgraded its outlook on European equities to ‘neutral’ from ‘overweight’. Simultaneously upgraded the more “growth-oriented” US.
Citi’s key reasons for the Europe downgrade:
heightened political risks; narrowing market leadership; and potential for a continued positioning unwind
More:
“Our sector allocation is tilted towards growth (‘overweights’ in tech, industrials) and select defensives (healthcare)” Citi analysts say they remain constructive over the medium-term due to early-cycle macro dynamics in Europe and inflecting fundamentals.
Citi’s note has spread across media outlets.
This article was written by Eamonn Sheridan at www.forexlive.com.
