Citibank Dirk Wheeler: European business cycle turns, overweight US stocks, bearish dollar

Dirk Willer, head of global macro and asset allocation research at Citi, shared his views on the world's major markets for the second half of the year at the Asset Management 2025 conference. Dirk Willer began by outlining Citi's views on allocations to various asset classes: overweight equities (especially in the US and to some extent Europe), underweight UK equities; neutral on government bonds, overweight emerging market bonds, underweight JGBs; underweight investment grade credit in Europe and the US; neutral on commodities; short the US dollar, long the euro and some emerging market currencies. On the stock market, Dirk Wheeler points out that "American exceptionalism" has clearly returned, as evidenced by its performance relative to Europe and the rest of the world, and the core driver is the return of artificial intelligence trading, with the performance of the technology sector leading the US market as a key support. (21 Asset Management)