Citi downgrades Continental Europe to Neutral from Overweight; rising tensions and tariff uncertainties undermine the short-term outlook for European equities

Citi downgrades Continental Europe to Neutral from Overweight; rising tensions and tariff uncertainties undermine the short-term outlook for European equities.

Citi's downgrade of Continental Europe to Neutral reflects growing concerns about rising geopolitical tensions and tariff uncertainties, which are negatively impacting the near-term outlook for European equities. This shift indicates a cautious stance towards the region, suggesting that investors may want to reassess exposure to European stocks, particularly in the automotive sector, as these factors could weigh on performance going forward.