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Wall Street Week Ahead: Undervalued euro shares a hurdle for U.S. stocks

By Angela Moon NEW YORK (Reuters) – After Wall Street's biggest weekly decline since June and the worst week this year for the Dow average, investors will be searching for a rebound. But the best gains may not be at home as investors take notice of an improved outlook in Europe. Fund managers have started to shift to euro-zone equities after a series of economic indicators showed the region finally emerging from recession. The region outperformed U.S. stocks in recent weeks, ending 0.2 percent higher this week while Wall Street underwent a 2 percent loss. …

Analysis: Citigroup has an emerging markets headache

By David Henry (Reuters) – Stronger earnings by Citigroup Inc show it is on the path to recovery but its broad presence in emerging markets, many of which are experiencing slowing economic growth, may temper investors' optimism. Emerging markets have fueled two-thirds of Citigroup revenue growth for the last two years. The bank operates in about 100 countries globally, far more than most of its U.S. competitors, which means it can be hit by economic factors that shareholders know little about. …