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Citigroup Downgrades Europe, Upgrades Japan Amid Trade Tensions

1/20/2026

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Story summary

Citigroup Inc. downgraded European equities for the first time in more than a year amid tensions between Brussels and Washington over U.S. President Donald Trump's Greenland initiative, moving to neutral.
Citigroup upgraded Japanese equities to overweight, citing longer-term earnings potential.
European shares fell after Trump announced tariffs on Greenland supporters, as the EU weighs $108 billion in retaliatory tariffs.
Citigroup's strategists now favor emerging markets and Japan over Europe.

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Story summary

Citigroup Inc. downgraded European equities for the first time in more than a year amid tensions between Brussels and Washington over U.S. President Donald Trump's Greenland initiative, moving to neutral.
Citigroup upgraded Japanese equities to overweight, citing longer-term earnings potential.
European shares fell after Trump announced tariffs on Greenland supporters, as the EU weighs $108 billion in retaliatory tariffs.
Citigroup's strategists now favor emerging markets and Japan over Europe.