Citigroup's Global Equity Outlook for 2026: Stability & Strategic Shifts

Citigroup has set a mid-2026 target for the MSCI All Country World Index, anticipating market stability until year-end with gains next year. They emphasize European stocks, downgrade Japan, and forecast earnings-per-share growth over 11% despite global economic uncertainties.

On Friday, Citigroup unveiled its projections for the MSCI All Country World Index Local, aiming for a mid-2026 target as the brokerage foresees stability in global equity markets until the end of the year, with significant gains expected in the first half of next year.

Citigroup has placed a benchmark target of 1,150 for the global equity index, indicating an approximate 5% increase from its last recorded value of 1,100.213. The brokerage emphasized potential gains in Japanese and European equities over the medium term, though it expressed concerns over tariff risks and yen strength, leading to a downgrade of Japan to "neutral."

With U.S. equities rated "neutral" and emerging markets and Australia "underweight," Citi continues to show confidence in technology stocks. While European stocks remain preferred, Citi forecasts above 11% earnings-per-share growth by the end of 2026, albeit lower than the consensus estimate of over 13%, amidst global economic challenges such as trade tensions.