Investors added $871 million to the Vanguard FTSE Europe exchange-traded fund in the five days through Friday, pushing the largest European ETF to its largest two-week inflow in history.

 

As Bloomberg notes, investor optimism after last week’s agreement between Greece and its creditors, and Macron's successful majority in French parliament have helped pull hot money into Europe. Hedge funds increased their euro positions to “net long” in the week ended June 13 for the first time in more than three years, Commodity Futures Trading Commission data show. And overall net Euro futures positioning is now at its longest in over 6 years...

 

Further supporting the relative risk appetite for European assets is the massive outperformance of its economic data relative to the US...

 

But of course, as we have shown before, it appears hi-tech, high-valuation, high-momentum US equities remain the favored vehicle for central bank sheet expansion to save the world...

We'll just have to see how this ends.