Citigroup analysts turned “underweight” on U.S. equities on recession fears however had been bullish on European shares, saying a lot of the pessimism was already priced-in.
The U.S. financial institution upgraded its view on continental European equities to “chubby”.
Extra broadly, it expects earnings per share for shares within the MSCI All Nation World index to contract by 5-10% over the 12 months.
The index, which was final buying and selling at 606, might finish 2023 in direction of the upper finish of a 680-780 factors vary, Citi mentioned in a analysis notice.
For 2023, the financial institution favours defensive sectors comparable to healthcare and cheaper cyclicals together with power and financials over costlier expertise and shopper discretionary names.
Supply: Reuters (Reporting by Roshan Abraham in Bengaluru; Enhancing by Saumyadeb Chakrabarty)
