Jan 6 Reuters Citigroup analysts turned underweight on U.S. equities on recession fears but were bullish on European stocks, saying much of the pessimism was already pricedin.

The U.S. bank upgraded its view on continental European equities to overweight.

More broadly, it expects earnings per share for stocks in the MSCI All Country World index to contract by 510 over the year.

The index, which was last trading at 606, could end 2023 towards the higher end of a 680780 points range, Citi said in a research note.

For 2023, the bank favours defensive sectors such as healthcare and cheaper cyclicals including energy and financials over more expensive technology and consumer discretionary names.

Reporting by Roshan Abraham in Bengaluru; Editing by Saumyadeb Chakrabarty

Source Reuters