Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Europe Stocks Outperform as Dollar Weakens on Rate Divergence
Eurozone equities are quietly outperforming US markets in May 2026, even as a resurgent dollar and hawkish Fed chatter dominate headlines. Lucas and Luna unpack the divergence: the dollar index is at 119.3, up nearly 5% year-to-date, yet European ETFs like VGK and EZU are posting solid gains. They drill into the mechanics — a weaker euro boosts export earnings for German and French industrials, while ECB rate expectations have steadied after last year's turmoil. The hosts also examine the Italy-Italy spread wobble and what Kevin Warsh's incoming Fed chairmanship could mean for…
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