Citi Downgrades European Stocks Amid US-Greenland Tensions

Citigroup Inc. has made significant changes to its outlook on European stocks. This marks the first downgrade of European equities in more than a year. The decision comes amid rising tensions between the United States and Europe, particularly concerning President Donald Trump’s controversial actions regarding Greenland.

Citi’s Downgrade of European Equities

In a note written by strategists including Beata Manthey, Citigroup expressed concerns over the impact of escalating transatlantic tensions. They highlighted that ongoing tariff uncertainties diminish the short-term investment potential for European stocks. This situation has created a less favorable earnings outlook for companies operating within the continent.

Key Factors Contributing to the Downgrade

• First downgrade of European equities in over a year.
• Worsening relations between Brussels and Washington.
• President Trump’s push to secure Greenland.
• Increased tariff uncertainties affecting investment decisions.

Analysts at Citigroup believe these geopolitical issues create a challenging environment for investors in European markets. The full implications of the ongoing tensions remain to be seen, but the sentiment around European equities has clearly shifted.