Citi downgrades US stocks to neutral

Analysts at Citi downgraded their stance on US and information technology stocks in anticipation of a rebound in real longer-term government bond yields.

The broker's rates strategists were anticipating the yield on the benchmark 10-year US Treasury note to rise towards 2.0% into 2022, from 1.2% at the time of writing.

That, Citi said, would put pressure on global stock market valuations and growth stocks "in particular".

Hence, they downgraded their view for tech-heavy US and IT stocks to neutral.

However, Japanese equities and Health Care were upgraded to overweight.