The Great Divergence Developed Markets Pull Away From Emerging

In this episode, Lucas and Luna unpack one of the most striking trends of May 2026: emerging-market ETFs are getting hammered—EEM down 2.8% in a week, EWY tumbling 5.5%—while European indexes like EZU and FEZ are actually gaining. Meanwhile, the trade-weighted dollar sits at 119.3, a level that historically crushes EM currencies and debt. But not all EM is equal: India's INDA is down only 0.7%, while Taiwan's EWT is off 3.7%. Why the divergence? The hosts dig into the Fed pivot narrative—market expectations now point to a July rate hike after a hot CPI print—and how the strong dollar is punishing countries with external debt. They also touch on the Putin-Xi gas-pipeline talks and what that means for energy-dependent EMs. Plus, a brief but sincere listener-support moment for the ad-free show. #EmergingMarkets #StrongDollar #FedHike #ETFs #EEM #EWY #INDA #Taiwan #India #Eurozone #USDIndex #TradeWeightedDollar #GlobalTrade #PutinXi #GasPipeline #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo