🌐Emerging Economies Continue to Outperform Developed Markets: Cable FX Macro

• Despite expectations for higher Fed Funds Rates, emerging markets continue to rally. This is contradicting the usual U.S.-DM dynamics where high rates hurt EM assets

• The MSCI Emerging Market Index is tracking an annualized return of 15.5% this year, the French CAC sees a 10.5% return over this period of time, the Dow Jones average records an 11.8% gain

• While some valuation metrics may not seem as bullish, the Citi Economic Surprise Index sees EMs outperforming DMs by 33.0 points. This means that emerging market economies have surprised economists' expectations to the upside and higher than in the developed countries