Wall Street giant Citigroup has adjusted its emerging market asset allocation recommendation, upgrading China to \u201coverweight\u201d, saying that investors should increase their exposure to assets that could benefit from a broadening market rally.<\/p>\n
The bank acknowledged that while China\u2019s relative earnings-per-share momentum remained a weak spot following a cautious start to the year, the market now screens as a prime candidate for capital rotation.<\/p>\n
Strategists highlighted light investor positioning, lower oil prices, and an improving global growth backdrop as key support measures, while watching for signs of an earnings inflection.<\/p>\n
The shift comes as global investors actively debate whether stock performances will expand beyond a narrow group of dominant tech leaders into a wider range of sectors in the second half of 2026.<\/p>\n
\u201cIf the macro environment remains favourable, including easing geopolitical risks, there is scope for broadening,\u201d a team of strategists including David Groman noted in a July 20, research report, pointing to cooling AI sentiment and elevated volatility alongside solid tech earnings growth as setting the stage for a potential rotation.<\/p>\n
With China\u2019s recent economic data disappointing the market, Citi analysts expected incremental policy measures to drive a mild recovery.<\/p>\n","protected":false},"excerpt":{"rendered":"Wall Street giant Citigroup has adjusted its emerging market asset allocation recommendation, upgrading China to \u201coverweight\u201d, saying that…\n","protected":false},"author":2,"featured_media":550283,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,250039,343,344,1657,35940,9843,250038,1647,4318,85,87,46,1326,250040,11471,15624,125,176446,196],"class_list":["post-550282","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-volatility","tag-artificial-intelligence","tag-artificialintelligence","tag-china","tag-citi","tag-citigroup","tag-david-groman","tag-el-nino","tag-federal-reserve","tag-il","tag-iran","tag-israel","tag-mexico","tag-msci-emerging-markets","tag-south-korea","tag-taiwan","tag-technology","tag-us-israel-war","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/550282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=550282"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/550282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/550283"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=550282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=550282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=550282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}