Why European Markets Are Surging While Asia Struggles

In late July 2026, European ETFs are surging—Germany's EWG up 4.2%, the broad VGK up 2.7%—while South Korea (EWY -2.7%) and Taiwan (EWT -4.0%) stumble. Lucas and Luna unpack the rotation: a weakening US dollar (trade-weighted index down to 120.7), a widening trade deficit (-$77.6B in May), and slower US GDP growth (1.5% annualized) are pushing capital back to Europe. They contrast this with Asia, where trade war fears and Singapore's surprise rate hike amplify headwinds. The episode explores whether this is a temporary shift or the start of a sustained rotation out of US and Asian markets into European assets. Specific data points include the euro at $1.14, yen at 163.7, and yuan at 6.77. A must-listen for global macro investors. #EuropeanMarkets #ETFRotation #TradeWar #StrongDollar #GDPGrowth #TradeDeficit #SingaporeRateHike #KoreaETF #TaiwanETF #ChinaETF #GermanyETF #GlobalMacro #CurrencyFlows #EmergingMarkets #DevelopedMarkets #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo