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Emerging Market ETFs Bounce on Government Shutdown

By  +Follow October 4, 2013 10:53AM
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Emerging market ETFs were boosted Thursday as the shutdown of the American government entered its fourth day. While political turmoil usually sends investors fleeing from emerging markets, the belief that the shutdown and pending debt-ceiling fight will keep the Federal Reserve’s bond-buying program intact and at current levels appears to have dissuaded fears and helped boost stocks in Indonesia, the Philippines, and India.

Today’s gains stretched across the board for various emerging market ETFs. The iShares MSCI Emerging Markets Indx (EEM) gained over 1 percent, the Vanguard FTSE Emerging Markets ETF (VWO) was up just over 1.15 percent, the WisdomTree India Earnings Fund ($EPI) gained over 1.5 percent, the PowerShares India Portfolio ($PIN) rose just over 1.5 percent, iShares MSCI Malaysia Index Fund (EWM) leapt almost 2.5 percent, and the iShares MSCI Indonesia Investable Market Index Fund (EIDO) was up just under 2.5 percent.

Emerging Markets Bolstered by Government Uncertainty

While it runs counter to traditional thinking about emerging market equities, the turmoil in Washington appears to be boosting funds tracking these stocks. It’s something that played out last month when currencies in emerging markets plunged on speculation that the Fed would taper the bond buying program, strengthening the dollar and drying up available capital. Now, with the bond-buying program continuing, many see an increased appetite for risk that will push investors into emerging market stocks with the chance for higher yields.

The Financial Times quoted a Societe Generale ($SCGLY) note to its clients as saying: “To the extent that it may affect Fed policy expectations this [the shutdown] may actually feed through as a risk-on signal for global emerging markets (GEM). In addition, this may lead to a downgrade of U.S. macro data in terms of market significance, which helps support the bottom-up approach to GEM while undermining the U.S.-centric top-down theme.”

Emerging Markets Coming Off Strong September

The news that the predicted taper in quantitative easing would be delayed at least a month combined with news of better-than-expected recoveries for economies in Europe, Japan, and the United States made for a rosy September for emerging market ETFs. Since September 1, the iShares MSCI Emerging Markets Indx is up almost 10.5 percent.

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Results for EEM
Pepe Plata
28 May 15 17:00:53
$SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $GOOG $RAX $WDAY $ONTY #GOOG #stockmarket #investing $GPRO $DXJ $JD $EEM $GDXJ $ERX
Jeff Quiggle
28 May 15 17:00:10
$MACRO > $QQQ $SPY $IWM $FEZ $FXI $USO $UUP $GLD $JNK $EEM $TLT $IYT Yesterday > $FXI $QQQ $SPY $UUP $IWM $FEZ $USO $JNK $GLD $EEM $IYT $TLT
Invest | Donate
28 May 15 16:53:15
@clayton_dd: BRCM Broadcom Corp. Ask http://t.co/LI8NRB7RX3 $BRCM $PSEC $DUST $EEM #BRCM #finance #invest
Rosner Stocks
28 May 15 16:46:38
SWKS Skyworks Solutions Inc. Financials http://t.co/bFRvZbU7QA $SWKS $EEM $NRZ $SNAK #SWKS #invest #invest
Lucky Jimmy
28 May 15 16:38:35
HYG iShares iBoxx High Yield Corporate Bond Fund Summary http://t.co/Lr2VtRKC44 $HYG $NUGT $MYEC $EEM #HYG #finance #investing
nasdaqfan
28 May 15 16:37:07
FB Facebook, Inc. Financials http://t.co/x7IDCYNgwe $FB $EEM $BRCM $GLD #FB #invest #stocks
leahanne
28 May 15 16:35:36
EEM iShares MSCI Emerging Markets % Change http://t.co/XyJRr6TQQA $EEM $SPLK $QID $DIS #EEM #nasdaq #share
clayton
28 May 15 16:33:23
BRCM Broadcom Corp. Ask http://t.co/o7oRgXzJck $BRCM $PSEC $DUST $EEM #BRCM #finance #invest
IH News Desk
28 May 15 16:32:09
ASHR db X-Trackers Harvest CSI 300 China A-Shares Fund % Change http://t.co/2XlRcSoM0r $ASHR $PBR $TAN $EEM #ASHR #stocks #tradeideas
Pepe Plata
28 May 15 16:07:14
$SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $EC $FNMA $FXE $KORS #EC #investing #investing $EEM $DAL $SCON $KORS #EEM
TRENDING PENNYSTOCKS
28 May 15 16:07:10
RT @penny_stocks1: $SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $EEM $AMBA $SBUX $TSN #EEM #pennystocks #investing $DIA $GERN $BS…
Pepe Plata
28 May 15 16:06:10
$SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $DIS $COST $JBLU $XLP #DIS #invest #investing $EEM $LVS $HD $DUST #EEM
Invest | Donate
28 May 15 16:05:33
@Stock_Tracker1: EEM iShares MSCI Emerging Markets Stock Message Board http://t.co/ibtuNNOX69 $EEM $DUST $XOM $RMRK #EEM #invest #pennyst…
Invest | Donate
28 May 15 16:05:31
@PolgarStocks: EEM iShares MSCI Emerging Markets % Change http://t.co/ko6gsFOUy1 $EEM $XLU $FV $IBB #EEM #investing #invest
Invest | Donate
28 May 15 16:05:29
@lookn4wins: EEM iShares MSCI Emerging Markets Ideas http://t.co/nu7OdZiCmT $EEM $DUST $EBIO $DUST #EEM #share #invest
Pepe Plata
28 May 15 16:05:09
$SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $EEM $SDRL $BRWC $CLF #EEM #stocks #investing $FV $SBUX $IYR $NUGT #FV
Pepe Plata
28 May 15 16:04:09
$SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $EEM $AMBA $SBUX $TSN #EEM #pennystocks #investing $DIA $GERN $BSX $RGBP
Pepe Plata
28 May 15 15:59:30
$SHAK Shake Shack Inc. $76.01 http://t.co/Fin6H9nahY $EOX $DXJ $EEM $BAC #EOX #investing #nasdaq $DIS $MINE $ONTY $EA #DIS
PolgarStocks
28 May 15 15:37:23
EEM iShares MSCI Emerging Markets % Change http://t.co/UsMg1SB3sS $EEM $XLU $FV $IBB #EEM #investing #invest
Stock_Tracker
28 May 15 15:37:21
EEM iShares MSCI Emerging Markets Stock Message Board http://t.co/VncAuB1RIC $EEM $DUST $XOM $RMRK #EEM #invest #pennystocks
lookn4wins
28 May 15 15:37:18
EEM iShares MSCI Emerging Markets Ideas http://t.co/zQLL8WSl1K $EEM $DUST $EBIO $DUST #EEM #share #invest
Investors Hangout
28 May 15 15:37:14
EBIO Eleven Biotherapeutics Inc. Market Cap http://t.co/OBIIHL082c $EBIO $AEM $USO $EEM #EBIO #investing #investing
Emylers
28 May 15 15:37:11
EEM iShares MSCI Emerging Markets Ex-Div Date http://t.co/fhM0vuo6JO $EEM $JNUG $CSCO $VALE #EEM #investing #investing
Investors Hangout
28 May 15 15:37:10
EEM iShares MSCI Emerging Markets 52Wk High http://t.co/dTUTSviBWj $EEM $FNMA $DIS $HPQ #EEM #tradeideas #nasdaq
IH News Desk
28 May 15 15:37:07
EEM iShares MSCI Emerging Markets Exchange http://t.co/NzecVlOuY2 $EEM $NAT $AVGO $ABC #EEM #share #finance
IH News Desk
28 May 15 15:37:05
EEM iShares MSCI Emerging Markets Market Cap http://t.co/nGjHTiFQ6c $EEM $HZNP $AMRN $GDX #EEM #finance #investing
Lucky Jimmy
28 May 15 15:37:04
FCEL FuelCell Energy, Inc. Short Sales http://t.co/2s4HpCrIJR $FCEL $RAD $EEM $BRCM #FCEL #tradeideas #tradeideas
nasdaqfan
28 May 15 15:36:07
EEM iShares MSCI Emerging Markets P/E Ratio http://t.co/jDmKbDSzWk $EEM $XOM $FNMA $HQU.TO #EEM #pennystocks #pennystocks
XATS-UK
28 May 15 15:36:06
#EmergingMarkets #ETF $EEM poised to underperform in the coming months. http://t.co/XJd9RpNEHn
leahanne
28 May 15 15:35:37
EEM iShares MSCI Emerging Markets Message Board Posts http://t.co/kNMngK6a44 $EEM $JUNO $XLV $SEDG #EEM #share #nasdaq
Investors Hangout
28 May 15 15:34:36
CVX Chevron Corp. Investor Opinions http://t.co/Nmo3cyg70P $CVX $QLD $EEM $SWKS #CVX #stock #stockmarket
Investors Hangout
28 May 15 15:34:35
CNR.TO Canadian National Railway Co. Quotes http://t.co/e7cS8vONCI $CNR.TO $IBM $FXA $EEM #CNR.TO #investing #nasdaq
IH NASDAQ OMX
28 May 15 15:34:16
BLTA Baltia Airlines Inc. Tick http://t.co/4FrUKTJLls $BLTA $EEM $FV $GOOGL #BLTA #finance #stock
Stock_Tracker
28 May 15 15:34:06
BSX Boston Scientific Corp. Exchange http://t.co/BY4gGS0CYu $BSX $EBAY $EEM $XOM #BSX #stockmarket #nasdaq
Investors Hangout
28 May 15 15:32:15
ATVI Activision Blizzard Inc. Filings http://t.co/Jhn6EMMTS4 $ATVI $PMCB $EEM $AMRN #ATVI #finance #investing
Stock Forums
28 May 15 15:32:05
AMGN Amgen, Inc. Ideas http://t.co/0JwupMK0DH $AMGN $NXPI $AXP $EEM #AMGN #share #pennystocks
lookn4wins
28 May 15 15:31:50
ACHC Acadia Healthcare Company, Inc. 52Wk Low http://t.co/97wXgFLPjj $ACHC $EEM $MOMO $AMRN #ACHC #stocks #stocks
DennyT
28 May 15 15:31:40
ABBV AbbVie Inc. Quotes http://t.co/GbxQOxCFNI $ABBV $EEM $LVGI $RMRK #ABBV #share #tradeideas
PolgarStocks
28 May 15 15:31:13
AAL American Airlines Group Inc. Volume http://t.co/IgUaJ8SET0 $AAL $GPRO $BABA $EEM #AAL #pennystocks #invest
dailystockplays.com
28 May 15 15:11:00
Below Bollinger http://t.co/TrpvTk1tgh $EEM $SIRI $SWN $CENX $GDP $JOY $SID $HOG $ADSK $FLO $KEG $OSK $CHRW $IEMG $EQT $WNC $CCG $PTX
DennyT
28 May 15 14:36:06
EEM iShares MSCI Emerging Markets Open http://t.co/i0giEgNzVE $EEM $XOM $UUP $EA #EEM #finance #stockmarket
Greg Harmon, CMT
28 May 15 13:55:55
$EEM drop out of BB to 200sma, 41/40.70/40 support, resistance 42.54/43/44 http://t.co/FoslCgiZYh
361 Capital
28 May 15 13:42:50
$SPY flat > $QQQ $IWM -0.1% > $EFA -0.2% > $EEM -1.3%. Markets quiet after yday's big bounce. But $FXI -3.6%, $IYT -1.1%.
IH NASDAQ OMX
28 May 15 13:38:40
HZNP Horizon Pharma plc Chart http://t.co/s3dZtQ7LTQ $HZNP $WFC $EEM $BAC #HZNP #tradeideas #stockmarket
PolgarStocks
28 May 15 13:35:37
EEM iShares MSCI Emerging Markets Tick http://t.co/1A7WmuC6DN $EEM $NUGT $UA $XBI #EEM #stocks #invest
Stock_Tracker
28 May 15 13:34:36
CRIS Curis, Inc. Market Cap http://t.co/6SyqZW5yPW $CRIS $EEM $MNKD $GDX #CRIS #tradeideas #nasdaq
binaryoptionsocial
28 May 15 13:26:04
RT RT Strong US Dollar Forces Apple to Hike Prices in Europe and Canada.. http://t.co/yiefnkjcRf $EEM #ETF #ETFs… http://t.co/ib1vWTgYZV
binaryoptionsocial
28 May 15 13:23:00
RT Three Charts That Will Rekindle Your Interest in Financial Market History.. http://t.co/xKmVkijnrf $EEM #ETF … http://t.co/ib1vWTgYZV
binaryoptionsocial
28 May 15 13:22:59
RT Strong US Dollar Forces Apple to Hike Prices in Europe and Canada.. http://t.co/yiefnkjcRf $EEM #ETF #ETFs #S… http://t.co/ib1vWTgYZV
IH NASDAQ OMX
28 May 15 13:21:58
SPXL Direxion Daily S&P 500 Bull 3X Shares Market Cap http://t.co/2m9rda88Fn $SPXL $EEM $ADHD $DUST #SPXL #invest #investing
				
				
By  +Follow October 4, 2013 10:53AM
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