Citigroup Downgrades Europe

Benzinga

Citigroup downgraded continental European equities to neutral, citing tariff uncertainty and U.S.–EU tensions, while shifting overweight exposure toward Japanese stocks.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Citigroup's strategist Beata Manthe downgraded continental European stocks to neutral from

00:07overweight, according to Bloomberg. Manthe cited rising transatlantic tensions tied to Trump's

00:13push to seize Greenland. Manthe made the change after the Euro Stocks Index rose 31% in dollar

00:18terms over the past year, outperforming the S&P 500. She said tariff uncertainty and strained

00:25relations between Brussels and Washington have weakened the near-term earnings outlook for

00:29European companies. Manthe said the stock's 600 still has upside through end 2026, but her team

00:37shifted its overweight allocation from Europe to Japan, citing stronger long-term earnings and

00:42valuation tailwinds in the Asian market. The strategist downgraded internationally exposed

00:47European sectors by cutting automotive and chemical stocks to underweight while raising

00:51personal care stocks to overweight. For all things money, visit Benzinga.com.

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