Citi downgrades Europe equities and lists 3 reasons why

seekingalpha06-17

Citi Research analysts downgraded European equities from overweight to neutral, and upgraded growth in U.S. equities, according to a Global Equity Strategy report. European equities have increasingly...

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European equities have increasingly...</p>\n\n<a href=\"https://seekingalpha.com/news/4116678-citi-downgrades-europe-equities-and-lists-3-reasons-why\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Citi downgrades Europe equities and lists 3 reasons why</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCiti downgrades Europe equities and lists 3 reasons why\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-17 23:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4116678-citi-downgrades-europe-equities-and-lists-3-reasons-why><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Citi Research analysts downgraded European equities from overweight to neutral, and upgraded growth in U.S. equities, according to a Global Equity Strategy report.  European equities have increasingly...</p>\n\n<a href=\"https://seekingalpha.com/news/4116678-citi-downgrades-europe-equities-and-lists-3-reasons-why\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IEUR","symbol_name":"安硕核心MSCI欧洲ETF","start_time":0,"source_url":"https://seekingalpha.com/news/4116678-citi-downgrades-europe-equities-and-lists-3-reasons-why","article_id":"2444319609","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1299972938/image_1299972938.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2444319609","pubTimestamp":1718636421,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Citi Research analysts downgraded European equities from overweight to neutral, and upgraded growth in U.S. equities, according to a Global Equity Strategy report.  European equities have increasingly","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IEUR":"安硕核心MSCI欧洲ETF","FEZ":"SPDR EURO STOXX 50 ETF","EWQ":"法国ETF-iShares MSCI"},"translate_title":"花旗下调欧洲股市评级并列出3个原因","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EWQ":1,"FEZ":1,"IEUR":1},"content_text":"Citi Research analysts downgraded European equities from overweight to neutral, and upgraded growth in U.S. equities, according to a Global Equity Strategy report.  European equities have increasingly more near-term risk as markets narrow and there is political uncertainty in the region, wrote Analyst Beata M. Manthey in the report.  The Euro Stoxx 50 (NYSEARCA:FEZ) is up more than 6% year-to-date and about 10% from a year ago, but it has come under pressure in the last few days -- it is down 4.64% from the last five days. However, analysts remain constructive over the medium term because of early-cycle macro dynamics in the region and inflection fundamentals, they said. They list three reasons for the downgrade: 1. Heightened political risk: “Prospects for a far-right majority in the French parliament has introduced considerable uncertainty, raising questions around fiscal consolidation, funding for Ukraine, and European industrial policy,” wrote Manthey. Also, the OAT-Bund yield spread rose to 79 basis points on Monday, which was the highest since 2017, and the spread widened around 30 basis points last week, after French President Emmanuel Macron called for elections. French equities (EWQ), (CAC:IND) tend to be very volatile around elections. The French bank sectors is also seeing a loss of 20% since mid-May. 2. Narrowing markets: Both U.S. (SP500) and European (FEZ) equities narrowed at the start of the year, and gains concentrated around the mega-cap growth stocks -- around February and April market leadership started to broaden -- but once again they have started to narrow with growth outperforming value. This was more prevalent in the U.S. But now European equities are following the U.S.’s footsteps: “Narrow leadership is evident in sector performance, where only tech and health care have been major contributors over to MSCI Europe (IEUR) performance over the past month,” wrote Manthey. 3. Positioning: Positioning on Europe (FEZ) and European banks (OTC:DJXSF) was already stretched, but now it is in line with the S&P 500 (SP500), “though investors are more long on the Nasdaq (COMP:IND).” When it comes to banks (OTC:DJXSF), they have been “hovering around max long levels” earlier in the year, analysts said, and “the last time we saw banks positioning unwind from similarly stretched levels was around [the Silicon Valley Bank crisis] in March 2023,” said Manthey. “Back then, normalized positioning fell from +5 to around -2 before rebounding. This suggests to us that the positioning unwind could go further.”","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2444319609"}