Citi downgrades European equities, cites 3 reasons. Upgrades its view on US equities.

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.