Good morning from Europe!

We never miss an opportunity to take a victory lap here at Steno Research and we have had a field day after getting yesterday’s print right to a point. You can read our main takeaways on the overall print here.

As apparent from the decomposition map below the disinflation is broadening and the speed looks to be increasing. Not out of sync with trouble but for now markets are buying into the soft landing narrative- unsurprisingly.

Can risk assets withstand their current earnings expectations? We have our doubts but after months of torture the first sign of relief was always going to throw shorts under the bus

Chart 1: US CPI