The Federal Reserve surprised markets earlier this month when it cut interest rates by 50 basis points , signaling a shift toward preserving economic growth. The move prompted Wall Street giants Barclays and Citi to adopt a more optimistic stance on global cyclical stocks. Cyclical stocks are generally sensitive to interest rates and economic growth, rising as financial conditions ease and the economy expands.
as long as it was not followed by a recession." Citi strategists share a similar outlook for European stocks. "Alongside Fed cuts and 'soft landing' hopes, this suggests we could be approaching the right time to start averaging into select oversold Cyclicals," said Citi strategists led by Beata Manthey in a note to clients on Sept. 20.
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