Citi stays constructive on European equities to mid-2027 despite macro headwinds
Newsquawk Staff ·
- Citi expects valuations to remain near the current c14x 12m forward PE, with double-digit EPS growth in 2026/27E, and stays balanced across Tech, Banks, Basic Resources, Health Care and Personal Goods.
- The bank says solid EPS growth, light positioning, fiscal-policy tailwinds and the broader case for global equities should support Europe, despite energy-price pressures, rate hikes and lower AI exposure.
- Citi remains Neutral on Europe globally, but keeps its end-2026 Stoxx 600 target at 640, and introduces a mid-2027 target of 700.
- Some US banks are reportedly detecting unauthorised AI agents operating within accounts, Axios reports citing sources
- European Movers: Hermes (RMS FP) -8%, Nokia (NOKIA FH), -0.8%, Nestle (NESN SW) +0.4%, Roche (ROP SW) +0.5%, SAP (SAP GY) +1%, Barclays (BARC LN) +1.8%, UCB (UCB BB) +13%
- Additional European Equity News - 22nd October 2026
- European Pre-Market Summary 22nd October 2026: European bourses set for a weak open; SAP, Nokia, Nestle report strong results, whilst Hermes disappoints
- Newsquawk Daily European Equity Opening News - 22nd October 2026
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