CITIGROUP chief analyst Beata Manthey says European cyclical equities tied to
the economic cycle looks compelling after a difficult stretch. Citi’s economic
surprise index, broad-based upward earnings-revision trends and a rebound in
business activity since summer point to the economy moving in a more positive
direction. Manthey flagged autos and chemicals as previously stressed sectors
that may have passed their worst. She added that a recently introduced steel
tariff regime has lifted European domestic steel prices and advantaged producers
exempt from the levy.
