- Citigroup strategists double-downgraded UK stocks to underweight, citing the market's defensive characteristics and heavy tilt toward commodities.
- The downgrade is driven by the view that the UK market is less appealing as geopolitical tensions begin to abate.
- In its global asset allocation, Citigroup now prefers exposure to US and Japanese markets while maintaining a neutral rating on Europe excluding the UK.
Quotes
“The UK stock market is defensive and tilted to commodities, making it less appealing as geopolitical tensions abate, according to Citigroup Inc. strategists.”