Citi downgrades US equites and upgrades China equities

Citi has revised its stock ratings:

• downgrading U.S. equities from “overweight” to “neutral” (Citi had been o’weight since October 2023, a good call)
• upgrading Chinese stocks to “overweight”

Citing ‘at least’ a pause in the ‘U.S. exceptionalism’ narrative.

• says U.S. growth momentum will trail behind other global regions
• U.S. stocks may regain their competitive edge once the narrative around artificial intelligence (AI) becomes dominant again

On China:

• strength of China’s tech industry, government support, and attractive valuations
• “DeepSeek” showcases China’s technological advancements

Info via a Bloomberg report (gated).

This article was written by Eamonn Sheridan at www.forexlive.com.