1 articles · Updated · yardeniquicktakes.com · Jun 29
Summary
China sank 9.9% in June, leading a broad global equity selloff that left only a handful of country ETFs—including Turkey, India and Spain—in positive territory.
US stocks also weakened, with SPY down 3.6%, while emerging-market funds held up somewhat better—EMXC fell 1.0% and EEM lost 2.1%—after the S&P 500 had hit a record on June 2.
Relative-performance ratios show the long US leadership trade is fading: US stocks versus developed markets ex-US have stalled since early 2025, and US versus emerging markets has been falling.
That retreat came even after the Strait of Hormuz reopened and oil prices fell, suggesting investors are rotating despite easing war-related pressure.
Forward revenue estimates for the ACW MSCI still reached a record high last week, indicating the global economy remains resilient even as equities endure a June swoon.