Citi: The current market is more like the "Tanker War" of the 1980s, with funds reallocating to large tech stocks.

格隆汇2026/03/16 01:52

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格隆汇 March 16｜Citigroup believes that compared to the oil crisis of the 1970s, the current market environment may be more similar to the "Tanker War" during the Iran-Iraq War in the 1980s. At that time, Iran and Iraq attacked each other's and third-party tankers in the Persian Gulf, causing tanker traffic through the Strait of Hormuz to drop by about 20% at one point, eventually forcing the US Navy to launch escort operations. In terms of market performance, oil prices reached a peak after a US ship hit a mine in July 1987, but the overall performance of US stocks did not collapse. Even though the "Black Monday" stock crash occurred in October 1987, the S&P 500 index maintained an upward trend throughout the conflict. Citigroup believes that even in extreme environments where geopolitical conflicts and energy shocks occur simultaneously, the stock market may still show a certain degree of resilience, which is more relevant to the current market. Regarding investment advice, Citigroup points out that global investors have recently clearly adjusted their stock holdings, no longer trading across diversified sectors, capital is once again concentrated in large technology stocks and other defensive assets, while reducing positions in small stocks that are more sensitive to economic cycles. Citigroup still maintains an "overweight" rating on US stocks, but has downgraded its view on US small-cap stocks from "overweight" to "neutral", recommending investors prioritize large technology stocks. However, since market volatility remains high, it is advisable to wait for volatility to subside before increasing positions.

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Latest Update October 8 – Pacira BioSciences (PCRX.O) shares surged by 44%, hitting a more than three-year high at $36.30. If the rally holds, PCRX is poised for its largest single-day gain on record. Pharmaceutical company Viatris (VTRS.O) will acquire Pacira BioSciences in a $1.65 billion cash deal, offering $36.50 per share. The offer represents a premium of approximately 44.8% over Pacira’s recent closing price of $25.20. The transaction will add Pacira’s non-opioid pain medications Exparel and Zilretta to Viatris' product portfolio. Viatris shares fell 2.6% to $17.04. JPMorgan stated: “We believe this acquisition will not significantly alter VTRS' overall financial profile in the short or long term, and expect Exparel’s sales to gradually decline post-2030 due to generic market entry.” Both parties expect to complete the transaction by the end of 2026. Including intraday fluctuations, PCRX shares have risen 40.2% year-to-date, while VTRS has gained 36.8%. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translation may contain errors or lack the necessary context, Reuters does not guarantee the accuracy of automated translated texts and provides them for readers’ convenience only. Reuters assumes no liability for any damage or losses resulting from the use of automated translation.)

路透社•2026/10/08 16:11