Citi Lowers European Stock Market Rating to Neutral for the First Time in Over a Year, Pointing to Rising US-Europe Tensions

Citi's Downgrade: Citi has downgraded the European stock market to Neutral for the first time in over a year due to increased tensions between Europe and the US and uncertainties surrounding tariffs, impacting the short-term investment outlook.

Trump's Tariff Threat: President Trump has threatened to impose tariffs on eight European countries until the US is permitted to purchase Greenland, further complicating the investment climate in Europe.

Stoxx 600 Index Outlook: Despite the downgrade, Citi still anticipates that the Stoxx 600 index may see further gains by the end of the year, although it finds investment opportunities in other regions more appealing.

US Industrial Production: The US Industrial Production for December remained steady at 0.4%, matching the previous period and exceeding the forecast of 0.1%.