Analysts at Citigroup wrote that UK equities are set to outperform their global counterparts as investors seeking to hedge against geopolitical risk turn to stocks listed in London. Citigroup has upgraded its outlook for European equities from underweight to overweight. The analysts noted that the heightened risks following significant attacks by the U.S. and Israel on Iran over the weekend would place broad pressure on stock markets. However, they indicated that the UK market benefits from its heavy weighting in commodity and defense stocks. Although the FTSE 100 index was down 0.75% late in the European morning session, its decline was smaller than those of other European blue-chip indices. Energy and basic materials stocks in the London market advanced, with oil giants Shell and BP rising by 3% and 2.5%, respectively.