** Wall Street giant Citigroup's C.N shares rise 1.3% to $107.92 in early trading

** Speaking at RBC Global Financial Institutions Conference, Citigroup CEO Jane Fraser says consumer spending is rising and balance sheets are probably the strongest in her tenure

** "The big wild card is obviously the Middle East. The big question really is the duration and the containability" - Fraser

** Citigroup expects Q1 investment banking fees and markets revenue to grow in mid-teens percentage

** Investors have soured on bank stocks in recent weeks as the ongoing Middle East conflict and labor market jitters fuel concerns of a stagflationary backdrop

** "The vast majority of updates from bank management teams on fundamental trends have been constructive. As a result, any positive macro development (especially on Iran war) could trigger a sharp rebound in stocks, especially if commentary from bank management teams at an industry conference this week remains supportive of EPS outlooks" - BofA Global Research

** As of last close, Citigroup down 8.7% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))