Avid readers of our research have likely noted how we have mentioned the US macro superiority to the Euro area in right about every single article this week.

ISM Services rebounded (in sharp contrast to consensus), while Services declined faster than feared in core countries in Europe. 

It takes a very stubborn Chinese, German or Frenchman to argue that the US is not in the driver’s seat of economic growth globally, but has the market turned long US bets into the consensus position? Not necessarily yet, despite ongoing positive surprises in the US and negative surprises in Europe and China. 

Conclusions:
– European assets are not…

Chart 1: US economic surprises remain much stronger than peers