Latest news with #DirkWiller
Bloomberg
09-05-2025
- Business
- Bloomberg
Citigroup Sees Risk of Yield Curve Steepening ‘Aggressively'
Citigroup Inc. strategists recommend betting on longer-term bonds to underperform, citing the risks of what they call an 'expensive' fiscal bill. Strategists led by Dirk Willer advised investors to position for spreads to widen between five- and 30-year rates via six-month forward contracts. They are targeting a move to 90 basis points, up from 40 basis points right now.
Khaleej Times
11-03-2025
- Business
- Khaleej Times
Citi cuts recommendation for US stocks as recession fears hit, lifts view on China
Citi analysts cut their recommendation for U.S. stocks to "neutral" from "overweight" on Monday after recession fears pummelled the market, arguing that the U.S. economy may no longer outpace the rest of the world in the coming months. At the same time, they upgraded their view on China to "overweight" from "neutral". The report was issued after the close of trade on Monday when the Nasdaq lost 4%, its steepest one-day tumble since 2022. The benchmark SP 500 fell 2.7%, its biggest daily drop of the year. Dirk Willer, Citi's global head of macro, asset allocation and emerging market strategy, said in a note to clients that two recent price signals contributed to the shift in view: the SP 500 breaking below its 200-day moving average and the soft performance of "generals" or market-leading stocks. "In the big picture, US equity outperformance may well return when the AI narrative takes over again, but in the coming months, we expect US growth momentum to undershoot the (rest of the world)," the note said. On China, Citi's economists have revised their forecast for Chinese GDP growth to 4.7% this year from 4.5%, partly on a boost from investment in artificial intelligence. Willer also noted China's tech sector is cheap relative to global peers, even after recent gains. "China screens well," said Willer. "While tariffs remain a risk ... there is also the possibility of reaching resolution in trade discussions with China, which would be very positive." In credit, Citi also downgraded U.S. high-yield debt to "neutral" from "overweight."
Yahoo
11-03-2025
- Business
- Yahoo
Citi Downgrades U.S. Stocks as Wall Street Suffers Worst Drop in Years
Citigroup (NYSE:C) is dialing down its optimism on U.S. stocks, cutting its rating to neutral while upgrading China. The move comes as concerns grow over the American economy under President Donald Trump. This shift follows a rough Monday on Wall Street. The Nasdaq plunged 4%its worst drop since September 2022while the Dow sank 890 points, or 2%, to 41,911. The S&P 500 slid 2.7% to 5,614, and more than 500 stocks in the Russell 3,000 are now trading over 50% below their 52-week highs. Warning! GuruFocus has detected 3 Warning Signs with NVDA. "U.S. exceptionalism is at least pausing," wrote Citi strategists, led by Dirk Willer. While AI could help U.S. stocks rebound down the line, the bank expects the economy to slow compared to other regions. Meanwhile, China's tech sector is booming, lifting the Hang Seng Index by over 20% this year. A separate Citi team warned U.S. stocks could see more losses ahead. Trump acknowledged the economy might go through a "transition," but the White House downplayed market fears, saying fundamentals remain strong. This article first appeared on GuruFocus. Sign in to access your portfolio
South China Morning Post
11-03-2025
- Business
- South China Morning Post
Chinese stocks find favour on DeepSeek trade as Citigroup downgrades US equities
Citigroup recommended that its clients cool off on US stocks while investing more in Chinese equities, a call that suggests an unravelling of the trade on American exceptionalism that buoyed the 'Magnificent Seven' US technology stocks over the past two years. Advertisement The bank downgraded US stocks for the first time since October 2023 to neutral from overweight, it said in a note on Tuesday. Meanwhile, it raised Chinese stocks to overweight based on breakthroughs in artificial intelligence (AI), policy tailwinds and attractive valuations, Dirk Willer, global head of macro research and asset allocation, said in the note. HSBC Holdings also downgraded US stocks to neutral. 'The news flow from the US economy is likely to undershoot the rest of the world in coming months, and at least tactically, US exceptionalism is therefore unlikely to roar back,' the report said. US stocks tumbled overnight, with the Nasdaq 100 plunging almost 4 per cent and wiping out US$1.1 trillion in value in the biggest loss since 2022. Other Wall Street firms including Goldman Sachs and Morgan Stanley raised their price targets for key gauges of Chinese stocks last month following the ascent of AI start-up DeepSeek Diversification from US equities has become conspicuous in the weeks after President Donald Trump's tariff policies against US trade partners raised the risk of a hard landing for the economy. Instead, investors are piling into stocks in China and Europe, which had been underperformers amid a frenzy over US tech stocks since early 2023. Advertisement 'A key driver of this outperformance is the improving relative fundamentals of markets outside the US,' said Gary Dugan, CEO of The Global CIO Office. 'In China, the government has a technological and cost advantage over many of its competitors in key growth industries. We expect the recent outperformance of European and Asian equity markets relative to the US to continue. A period of outperformance is only just starting to reverse years of underperformance.'
Zawya
11-03-2025
- Business
- Zawya
Citi cuts recommendation for US stocks as recession fears hit, lifts view on China
SINGAPORE: Citi analysts cut their recommendation for U.S. stocks to "neutral" from "overweight" on Monday after recession fears pummelled the market, arguing that the U.S. economy may no longer outpace the rest of the world in the coming months. At the same time, they upgraded their view on China to "overweight" from "neutral". The report was issued after the close of trade on Monday when the Nasdaq lost 4%, its steepest one-day tumble since 2022. The benchmark S&P 500 fell 2.7%, its biggest daily drop of the year. Dirk Willer, Citi's global head of macro, asset allocation and emerging market strategy, said in a note to clients that two recent price signals contributed to the shift in view: the S&P 500 breaking below its 200-day moving average and the soft performance of "generals" or market-leading stocks. "In the big picture, US equity outperformance may well return when the AI narrative takes over again, but in the coming months, we expect US growth momentum to undershoot the (rest of the world)," the note said. On China, Citi's economists have revised their forecast for Chinese GDP growth to 4.7% this year from 4.5%, partly on a boost from investment in artificial intelligence. Willer also noted China's tech sector is cheap relative to global peers, even after recent gains. "China screens well," said Willer. "While tariffs remain a risk ... there is also the possibility of reaching resolution in trade discussions with China, which would be very positive." In credit, Citi also downgraded U.S. high-yield debt to "neutral" from "overweight."
