I think even when the ECB was saying that they were going to raise rates was not being bought by investors. In the chart below the inability of banks stocks to perform is quiet telling. deterioration in growth is also to blame for the inability of European banks to see some performance. As the char below shows the underperformance of European banks relative to bunds and the gap widening is quiet telling. The correlation in pane 2 shows the 90d correlation between Banks and Bunds the bottom was the lowest we have seen in almost a decade. While that correlation has improved slightly we are still low relative to historically average. So short Europe might still be a trade to watch.

Updated Chart: Danilo Masoni