Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Eurozone Small Caps Are Suddenly Beating Large Caps
Episode 95 of The European Economy Podcast. Lucas and Luna unpack a surprising rotation underway in Eurozone equities: small-cap stocks are outperforming large caps for the first time in over two years. They trace the driver to the ECB's recent rate cuts finally filtering down to smaller firms, while large exporters still face headwinds from a strong dollar and weak Chinese demand. Using fresh data from the week of July 6, 2026, they examine how the Vanguard FTSE Europe ETF (VGK) has rallied 2.5% in five days, with smaller-country ETFs like Germany's EWG up 4.1%. But beneath the…
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