As Inflation Cools, Europe Finds Its Footing
Could disinflation be the unexpected catalyst that re-rates Europe?
Europe may finally be catching a break. Disinflationary forces are building—from cooling wage growth to falling energy prices and a stronger euro. With oil forecasts being cut and gas prices down 40% since February, the macro picture is shifting in Europe's favor. Layer on top of that a sharp rebound in investor flows and still-depressed positioning—hedge funds remain net sellers YTD—and the setup is becoming harder to ignore. Could disinflation be the unexpected catalyst that re-rates Europe?