Greenland friction escalates, HSBC downgrades European stock ratings

Deep Tide TechFlow News, on January 20th, according to Jinshi Data, Citigroup downgraded its European stock rating for the first time in over a year, citing US President Trump’s attempt to annex Greenland, which has led to a deterioration in relations between Brussels and Washington. Strategists including Beata Manthey wrote: The latest escalation of transatlantic tensions and tariff uncertainties have weakened the near-term investment outlook for European stocks and damaged the earnings prospects of European companies. They downgraded the rating of European markets outside the UK in global asset allocation to “Neutral” due to recent weak investment prospects. Meanwhile, Citigroup upgraded its rating of Japanese stocks from “Neutral” to “Overweight.” The European stock market, which outperformed the US stock market over the past year, plummeted sharply on Monday after Trump announced new tariffs on countries supporting Greenland. The EU is considering tariffs on US goods worth $108 billion, as well as other possible retaliatory measures.