Citigroup Double-Downgrades UK Stocks to Underweight, Prefers US and Japan

2 articles · Updated · Bloomberg · Jul 13

Citigroup cut UK equities two notches to underweight from overweight in its global asset-allocation view, marking a sharp reversal in stance.
Beata Manthey's team said the UK market looks less appealing as geopolitical tensions ease because its defensive profile and heavy commodity tilt lose relative appeal.
US and Japanese stocks are now Citi's preferred exposures, while Europe excluding the UK was left at a neutral rating.
The call suggests Citi sees leadership shifting away from defensive, resource-heavy markets as investors rotate toward regions better positioned for a calmer risk backdrop.