Ideas
ASML sees sustainable AI-driven order boom.
ASML delivered record Q4 bookings and a strong 2026 outlook because AI demand has become clearer and sustainable. Customers are aggressively building capacity, driving demand across ASML's advanced and less advanced systems, and management is returning cash via buybacks and dividends.
SK Hynix benefits from AI memory prices.
South Korea's stock-market surge is driven mainly by SK Hynix and memory chips. As hyperscalers and data-center builders demand more memory, prices are rising and suppliers like SK Hynix are benefiting.
Structurally bearish dollar, not a trigger.
Cudmore remains structurally bearish on the dollar due to long-term U.S. policy and debasement risks, although he does not see Trump's latest weak-dollar comments as a fresh near-term sell trigger.
Gold record supports gold miners.
Gold is hitting records as investors seek safe-haven assets, which is a positive backdrop for gold miners that have already rallied strongly. Further upside depends on how much more the precious-metals rally can extend.
Avoid internationally exposed European consumer stocks.
International demand for European consumer and internationally exposed companies is still weak, while tariff risk and euro strength pressure earnings delivery. This cracks the international EPS story even as the domestic story improves.
Emerging markets are top global pick.
Emerging markets are Citi's top global pick. The AI trade is broadening beyond the U.S. into EM, and a weaker dollar/diversification push is driving U.S. investors to seek opportunities there.
Buy European industrials, resources, banks.
Europe's domestic story should strengthen as fiscal stimulus and issuance begin to flow. Citi's top European sector picks are industrials, basic resources, and banks, with industrials at the crossroads of AI adoption and fiscal spending.
Prefer semis over software in Europe.
The AI trade remains alive and is broadening. Within European technology, Citi is bullish semiconductors but much less constructive on software.
Prefer semis over software in Europe.
The AI trade remains alive and is broadening. Within European technology, Citi is bullish semiconductors but much less constructive on software.
Korea, Taiwan, South Africa top EM picks.
Within Asia/emerging markets, Citi's top country recommendations are Korea, Taiwan, and South Africa. Korea and Taiwan are levered to the broadening AI hardware cycle, while South Africa offers gold exposure.
European mid-caps benefit from fiscal stimulus.
Citi still sees a domestic smaller/mid-cap European equity story. Although it fizzled late last year, mid-caps should benefit as German fiscal spending starts to expand, and their earnings prospects may outpace the DAX.
UK defense stocks offer cheap exposure.
UK equities are cheaper than other regions, and Citi likes basic resources, banks, industrials, and defense within the UK. The FTSE 100 has the highest share of defense stocks, making it a targeted way to play defense spending.
LVMH faces cautious outlook and weak sales.
LVMH's key fashion and leather goods unit saw holiday sales fall, and management gave a cautious 2026 outlook. Wines and spirits were especially weak, with cognac demand in crisis, while jewelry was only a partial bright spot.
Tesla fundamentals weak, robotaxi hopes uncertain.
Tesla's earnings and sales trends are deteriorating while the stock remains buoyant on hopes for robotaxis and humanoid robots. Progress on those future drivers is uncertain, leaving the valuation exposed.
Weak dollar, IRA pressure pharma.
European pharma faces pressure from U.S. IRA drug-price negotiation, profit-taking after a strong run, and a weaker dollar that hurts companies reporting in U.S. dollars. The weaker dollar is generally a headwind for pharma.
This Bloomberg Markets video, published January 28, 2026,
features Christophe Fouquet, Anna Edwards, Mark Cudmore, Chloe Meley, Beata Manthey, Angelina Lai, Craig Trudell, Sam Fazeli
discussing ASML, 000660.KS, USD, GDX, European consumer stocks, EEM, European industrials, European basic resources, EUFN, SMH, European Software, EWY, EWT, EZA, European Mid-Caps, UK Defense Stocks, LVMH, TSLA, European pharma.
15 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Christophe Fouquet,
Anna Edwards,
Mark Cudmore,
Chloe Meley,
Beata Manthey,
Angelina Lai,
Craig Trudell,
Sam Fazeli
· Tickers:
ASML,
000660.KS,
USD,
GDX,
European consumer stocks,
EEM,
European industrials,
European basic resources,
EUFN,
SMH,
European Software,
EWY,
EWT,
EZA,
European Mid-Caps,
UK Defense Stocks,
LVMH,
TSLA,
European pharma
