Tensions between the US and Europe intensify, investors shift to emerging market assets and gold

Foresight News reported, citing Bloomberg, that as tensions between the US and Europe weaken the US dollar, emerging market stocks, currencies, and precious metals are continuing the strong momentum seen at the beginning of 2026. Investors are pouring into emerging market funds at a record pace, driving the MSCI Emerging Markets Index higher, with Asian currencies generally rising. This rally is mainly driven by robust global growth, the AI spending boom, political transformation in Latin America, and the sound fiscal and monetary policies of emerging markets. Katie Koch, CEO of TCW Group, stated that investors are seeking to diversify assets away from US Treasuries, describing it as a "Quiet-Quitting" of US bonds.