Citi Strategist Who Called Europe’s Stock Rally Downgrades Bloc

The Citigroup Inc. strategist who called European stocks’ outperformance has turned more cautious on the region, citing worsening relations between Brussels and Washington over President Donald Trump’s push to seize Greenland.

Beata Manthey cut stocks in continental Europe to neutral from overweight, the first time she’s downgraded them in over a year during which the Euro Stoxx Index rose 31% in dollar terms through Friday, outpacing the S&P 500.

“The latest step-up in transatlantic tensions and tariff uncertainty dents the near-term investment case for European equities” and hurts the earnings outlook for companies on the continent, Manthey wrote in ...