Good morning. The yen’s weakness disrupts Scott Bessent’s bullish outlook, while US CPI data (3.4% consensus) and a 30-year debt auction loom. Yet Europe’s strong performance—up 12% in the Stoxx 600, or 10.5% in dollars—offers untapped potential. Vincenzo Vedda of DWS notes Asian investors lack basic Europe knowledge, asking ‘what is the EU?’ due to post-GFC neglect. Europe’s gains, including the FTSE 100’s record high, contrast with US tech/AI fears. Ray Douglas’ chart highlights Europe’s earnings growth since 2022. Despite this, investors miss opportunities, leaving money unallocated. Team Europe urges action, even joking about Greenland.

The region’s success stems from currency-unhedged bets benefiting from a weaker dollar last year. This year, Europe avoids US tech concentration, offering stability. However, Vedda laments Europeans’ poor communication, with pushback on European investments. The gap between Europe’s performance and investor awareness is stark.

Data shows Europe’s Stoxx 600 and FTSE 100 outpaced expectations. Earnings growth since 2022, per Emily Herbert, underscores resilience. Yet, ‘muscle memory’ from past stagnation persists. Vedda’s ‘Gateway to Europe’ sessions aim to educate, but skepticism remains. The article stresses Europe’s potential despite global focus on AI and US markets.