Is U.S. market influence waning?

Chart  •  October 1, 2025

In this chart

Is U.S. market influence waning? It seems regional volatility is moving to its own rhythm. For years, US volatility was a barometer of global risk, but that is weakening. In 2025, the sensitivity of both EM and EAFE equity implied volatility to U.S. implied volatility fell to multi-year lows. With regional risk becoming more independent, advisers may find new diversification opportunities. Learn more about this story in our blog post.

Regional volatility rings its own beat

Source: CBOE Volatility Indexes® (VXMXEF, VXMXEA & VIX) and MSCI. Data from August 1, 2019 to August 29, 2025.

Subscribe today
for insights delivered direct to your inbox.