Citigroup: Downgrades European stock market rating to neutral due to increased uncertainty over Trump's tariff threats.

Citibank downgraded its rating on European Continental stocks to "neutral" on Tuesday for the first time in over a year. The bank stated that the latest escalation of transatlantic tensions and uncertainty over tariffs have weakened the reasons for investing in European stock markets in the short term. President Trump threatened over the weekend to impose additional tariffs on eight European countries until the U.S. is allowed to acquire Greenland, further increasing trade uncertainty. Citibank strategists stated, "We are downgrading Europe to neutral in our global asset allocation." They noted that while their forecast targets still show upside potential for the pan-European STOXX 600 index by the end of 2026, the risk-return profile of other markets is more attractive.