Citi: global profit may drop significantly

By RockedBuzz 1 Min Read

Bank failures and the acquisition of Credit Suisse in recent weeks have made market participants aware of the dangers of a lack of liquidity, and investors have been scared.

The stress in the banking sector reminded us of the negative consequences of monetary tightening. We believe that in the future, investors will not fear high interest rates, but recession

Citi analysts claimed.

The experts also warned that the continuing crisis of confidence may limit the willingness of banks to take risks, and as a result, they may issue fewer loans. With investors prioritizing quality, Citi sees the technology sector gaining traction.

Analysts also noted that US stocks tend to outperform European stocks during periods of profit declines, so they downgraded the European market to “neutral” and the global market as well. “Volatility is likely to continue in the near term as the market prices the impact of the expected US recession,” the research team wrote in a note on Friday.

Cover image source: Getty Images

Share This Article
Leave a comment