CITIGROUP chief analyst Beata Manthey says European cyclical equities tied to the economic cycle look 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

CITIGROUP chief analyst Beata Manthey says European cyclical equities tied to the economic cycle look 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.