Citi Downgrades Europe to Neutral as Greenland Tariffs Cloud Earnings Outlook
Citi’s global strategy team downgrades European stocks to neutral amid tariff‑driven uncertainty tied to the Greenland dispute, trimming 2026 European EPS growth to about 8% from around 10% and highlighting euro strength and high export exposure as key downside risks for the Stoxx 600. The firm also shifts autos and chemicals to sell while energy is left neutral, and notes Europe could face retaliatory measures totaling about €93 billion as U.S.–EU tensions persist.