Why European Stocks Are Outperforming US Markets in 2026

In this episode of The Global Economy Podcast, Lucas and Luna explore why European stocks, particularly German and Italian ETFs, are surging while US markets stall. With the S&P 500 at 7,519 but small caps lagging, and the dollar weakening against the euro and yen, capital is flowing across the Atlantic. Lucas breaks down the two key drivers: European fiscal expansion (especially Germany's infrastructure spending) and a dovish ECB poised to cut rates sooner than the Fed. He cites specific ETF data: EWG up 2.1% in five days, EWI up 2.6%, while the S&P 500 eked out only 0.3%. They also discuss how the strong euro is splitting European ETF performance, with export-heavy France lagging domestic-focused Italy. A data-rich, focused look at one of 2026's biggest macro shifts. #EuropeanStocks #GermanEconomy #ECB #USMarkets #CurrencyFlows #DollarWeakness #EuroStrength #ItalyEconomy #ETFPerformance #FiscalExpansion #MonetaryPolicy #GlobalMacro #MarketRotation #EWG #EWI #EWQ #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo