Citigroup said on Friday it was expecting a rally in global equities to extend into 2025, as falling interest rates and easing inflation could help prop up corporate earnings.
Citi estimated a 10% earnings-per-share growth for global equities, slightly below analyst consensus of 13%, adding that U.S. and emerging market regions could see the strongest EPS growth of about 15%. The U.S. benchmark S&P 500 index rallied 24% in 2024, fueled by growth expectations surrounding artificial intelligence, expected rate cuts from the U.S. Federal Reserve, and more recently the likelihood of deregulation policies from the incoming Trump administration.
Among other regional equity markets, Citi maintained its “neutral” view on emerging markets, “underweight” on Australia and Japan, and “overweight” on Continental Europe.