Citi(US:C) Ge Long Hui·2026-01-20 03:56Core Viewpoint - Citigroup has downgraded its rating on European stocks for the first time in over a year due to escalating tensions between Brussels and Washington, exacerbated by President Trump's actions regarding Greenland, which negatively impacts the investment outlook for European equities and corporate earnings [1] Group 1: European Stocks - Citigroup has lowered the rating for European markets, excluding the UK, to "neutral" in global asset allocation due to a weak recent investment outlook [1] - The downgrade is attributed to increased transatlantic tensions and uncertainty regarding tariffs, which have weakened the near-term investment prospects for European stocks [1] Group 2: Japanese Stocks - In contrast, Citigroup has upgraded its rating on Japanese stocks from "neutral" to "overweight," indicating a more favorable outlook compared to European equities [1] Group 3: Market Reactions - Following Trump's announcement of new tariffs on countries supporting Greenland, European stock markets experienced a significant decline, despite having outperformed the US stock market over the past year [1] - The European Union is considering imposing tariffs on US goods valued at $108 billion as a potential retaliatory measure [1]