At the same time, Morgan Stanley data shows that the aggregate positions indicator in Europe has fallen to the third-lowest level since 2015, the standard deviation has reached a level below minus 1.5, and the 4-week change in positions has dropped below minus 2 standard deviations.

These figures mean that the current net short pressure in the European market is already at an extreme within the historical distribution over the past ten years, and similar readings have only been seen after certain historically significant periods of market stress.

Further Morgan Stanley data shows that, judging by the Z-score of monthly position changes, the reduction in CTA positions in European assets has reached the most extreme level in the entire history of this data series.