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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
Omphemetse Masilo
2 Jul 15 10:37:59
RT @valuewalk: Mark Mobius: Case Study - Argentina http://t.co/uO5lGiYptP $EEM $VWO http://t.co/5JBYtbUABE
Maurice Givens
2 Jul 15 10:33:46
RT @valuewalk: Mark Mobius: Case Study - Argentina http://t.co/uO5lGiYptP $EEM $VWO http://t.co/5JBYtbUABE
Market Int Center
2 Jul 15 10:31:58
iShares MSCI Emerging Markets Index $EEM Showing Bearish Technicals With Support At $39.29 ( http://t.co/ZaVKJiCALI )
binaryoptionsocial
2 Jul 15 10:13:07
RT tansybate: $OREX Orexigen Therapeutics http://t.co/OzAW2OZN3d #CanadaDay #USWNT #ES_F #ALSI #GreeceCrisis $OIL $AGN $EEM $PANW #OL #na…
Angelique Abbott
2 Jul 15 10:09:26
RT @tansybate: $OREX Orexigen Therapeutics http://t.co/u2u0aNgdP7 #CanadaDay #USWNT #ES_F #ALSI #GreeceCrisis $OIL $AGN $EEM $PANW #OL #nas…
Todd Rosenbluth
2 Jul 15 10:06:31
Most actively traded @iShares #etfs this week are $iwm $eem $tlt. Sign investors are rethinking where to take on risk amid possible #Grexit
#HelpYouGetGAINS
2 Jul 15 09:31:12
RT @valuewalk: Mark Mobius: Case Study - Argentina http://t.co/uO5lGiYptP $EEM $VWO http://t.co/5JBYtbUABE
ETF Godfather
2 Jul 15 09:21:23
@FrontierMarkets In turn, hindering their desire for promotion to $EEM
TalkMarkets
2 Jul 15 09:08:45
The Big Picture $CAPE $DJI $ECH $EEM $EIDO $EWA $EWC $EWG $EWH $EWS $EWY $EWZ $GLD $NDX $SPX $URTH http://t.co/9xn0cQp8YR
ValueWalk
2 Jul 15 08:34:34
Mark Mobius: Case Study - Argentina http://t.co/uO5lGiYptP $EEM $VWO http://t.co/5JBYtbUABE
DailyStockPicks
2 Jul 15 08:20:59
$NVDA acquiring TransGaming Assets, values $TNSGF $TNG.V at 300%+ upside, 25 cents $EEM $VWO $UGAZ investors read http://t.co/M6ATjY2Anp
Blue Ocean Ex
2 Jul 15 08:10:59
$FXI $EWJ $EEM $DXJ $HEDJ w/ sub-penny & nanosecnds in the US trdg day, in 53+ venues, does risk halt in the US nite? nope. Shld trdg? nope.
Top ETF Funds
2 Jul 15 07:58:28
ETF Asset Report of 1H: Currency Hedging Tops; US Flops - ETF News And Commentary.. http://t.co/rVwcMOiIr3 $EEM #ETF #ETFs #Stocks
Kevin T. Carter
2 Jul 15 07:57:37
Here is whats wrong with $EEM & $VWO Samsung merger doesn’t get support from proxy adviser Glass-Lewis http://t.co/fQ2LVGBzUz via @WSJ
Rosner Stocks
2 Jul 15 07:37:47
$SWKS Investor Opinions Updated Thursday, July 2, 2015 09:59:23 AM $XLF $EEM $QLD $HJOE http://t.co/0tnhSX4twu
IH News Desk
2 Jul 15 06:55:42
$AFMD Stock Message Board Updated Thursday, July 2, 2015 09:11:24 AM $EEM $RMRK $SLW $XLY http://t.co/CTUI3WtDyE
Anna Daniels
2 Jul 15 06:27:01
RT @361Capital: $SPY -2.1% > $EEM -2.2% > $QQQ -2.4% > $IWM -2.6% > $EFA -3.1%. XL sectors ALL lower. Worst: $XLV $XLF $XLB down 2%+.
PolgarStocks
2 Jul 15 06:10:14
$KMI Financials Updated Thursday, July 2, 2015 08:07:22 AM $XOP $EEM $OWOO $WMT http://t.co/qj9f3vvqNi
PolgarStocks
2 Jul 15 06:10:10
$UWTI Opinions Updated Thursday, July 2, 2015 08:07:22 AM $OWOO $MJMJ $EEM $FCX http://t.co/ferw7fzGkf
Stock Market Picks
2 Jul 15 06:09:02
$AGG $AMLP $DBC $UGAZ $DGAZ $DUST $EDZ $EEM $SPY $QQQ $EEM $GDX $VXX $EWJ $IWM Check our Market report about ETFs: http://t.co/4LO6XNFhOp
Tim Seymour
2 Jul 15 06:00:43
Often asked why $EEM not always reflecting "real" EM price action.Its driven by #China and heavy #Asia. Top 10 weights: 9/10 Asia 5/10 China
Pepe Plata
2 Jul 15 05:54:14
$OREX Orexigen Therapeutics http://t.co/xynX7aQiCX $SSO $SSNI $AMPE $FV #SSO #stockmarket #invest $FEYE $PTLA $EEM $FXI #share #history
PolgarStocks
2 Jul 15 05:09:12
$MINE Financials Updated Thursday, July 2, 2015 07:07:22 AM $XIV $CRUS $EEM $EMB http://t.co/EOfLbucD3q
IH News Desk
2 Jul 15 04:54:13
$TSLA Filings Updated Thursday, July 2, 2015 07:11:22 AM $ALXN $HEDJ $EEM $INTC http://t.co/O4zSxUwNPG
Forex
2 Jul 15 03:45:08
RT @marketminute: $EEM Interesting pattern in some emerging markets in spite of a stronger US dollar
PolgarStocks
2 Jul 15 03:06:17
$GILD Percent Change Updated Thursday, July 2, 2015 05:07:23 AM $EEM $CNC $IBM $USO http://t.co/zqdr1rTtxb
Rosner Stocks
2 Jul 15 02:33:10
$AAPL Last Price Updated Thursday, July 2, 2015 04:59:27 AM $CNC $SBUX $CLF $EEM http://t.co/12ralqlRpF
Trading Derivatives
2 Jul 15 01:54:44
RT @ETFalpha: Emerging Stocks Decline Before U.S. Data as China Shares Slump $EEM $VWO #EM http://t.co/Vcr4VRq0T4
EMerging Equity
2 Jul 15 01:51:22
Emerging Stocks Decline Before U.S. Data as China Shares Slump $EEM $VWO #EM http://t.co/Vcr4VRq0T4
MarchingOrders
2 Jul 15 00:47:57
RT @marketminute: $EEM Interesting pattern in some emerging markets in spite of a stronger US dollar
Rosner Stocks
1 Jul 15 23:29:06
$TVIX Stock Forum Updated Thursday, July 2, 2015 01:59:24 AM $EEM $JJG $RNN $CMGO http://t.co/k55dFZU5WT
IH News Desk
1 Jul 15 22:46:35
$EEM Company Info Updated Thursday, July 2, 2015 01:11:22 AM $RXMD $HYG $JNJ $XLV http://t.co/bi6zIAm1Gd
binaryoptionsocial
1 Jul 15 22:07:30
RT PolgarStocks: $EEM News Updated Wednesday, July 1, 2015 11:07:27 PM $BTU $TBT $AAPL $KMI … … http://t.co/XG5hVFJGig
PolgarStocks
1 Jul 15 22:00:09
$GDXJ Percent Change Updated Wednesday, July 1, 2015 12:07:27 PM $EEM $SBUX $PMCB $XOM http://t.co/wTpwAz0Dy7
binaryoptionsocial
1 Jul 15 21:51:21
RT PolgarStocks: $EEM News Updated Wednesday, July 1, 2015 11:07:27 PM $BTU $TBT $AAPL $KMI … http://t.co/XG5hVFJGig
James DiPlata
1 Jul 15 21:43:29
RT @PolgarStocks: $EEM News Updated Wednesday, July 1, 2015 11:07:27 PM $BTU $TBT $AAPL $KMI http://t.co/tjmC8PDdyZ
sergio teijelo II
1 Jul 15 21:29:37
RT @hedgefundclone: $EEM Stock Pickers have the greatest edge in the most inefficient markets, and there are no more inefficient markets th…
Eric Dahlberg
1 Jul 15 21:26:05
RT @hedgefundclone: $EEM Stock Pickers have the greatest edge in the most inefficient markets, and there are no more inefficient markets th…
Alpha Capture
1 Jul 15 21:11:07
RT @hedgefundclone: $EEM Stock Pickers have the greatest edge in the most inefficient markets, and there are no more inefficient markets th…
BillionairesPort
1 Jul 15 21:03:27
$EEM Stock Pickers have the greatest edge in the most inefficient markets, and there are no more inefficient markets than Emerging Markets
PolgarStocks
1 Jul 15 21:00:05
$EEM News Updated Wednesday, July 1, 2015 11:07:27 PM $BTU $TBT $AAPL $KMI http://t.co/tjmC8PDdyZ
PolgarStocks
1 Jul 15 19:59:08
$TASR Company Info Updated Wednesday, July 1, 2015 10:07:23 PM $HJOE $EEM $FB $SLTD http://t.co/c4TZhlBIKC
Steve Nurse
1 Jul 15 19:10:40
Hangovers from the bubbly are always the worst $SPY $EEM $XLK https://t.co/g5A9DxiFae
Pepe Plata
1 Jul 15 18:50:05
$OREX Orexigen Therapeutics http://t.co/xynX7aQiCX $AMBA $LQMT $ICLD $CEMP #AMBA $RAD $XLI $TASR $EEM #RAD #stock #tradeideas #CL_F
Deidre Honore
1 Jul 15 18:45:06
$OREX Orexigen Therapeutics http://t.co/u2u0aNgdP7 #CanadaDay #USWNT #ES_F #ALSI #GreeceCrisis $OIL $AGN $EEM $PANW #OL #nasdaq #tradeideas
Andy Lee
1 Jul 15 18:30:37
Today's Call for Tomorrow $EEM Long $EFA Short $XLF Long $SPY Long $QQQ Short $IWM Short $TLT Short https://t.co/VSIjnQ2NYu
PolgarStocks
1 Jul 15 16:55:05
$CLF Reviews Updated Wednesday, July 1, 2015 7:07:22 PM $SLW $CELG $EEM $NEM http://t.co/BghkvCtLQf
UPTOWN nigga ⚡
1 Jul 15 16:51:02
@notalkingseem free $eem 🔓
Alejandra Sayre
1 Jul 15 15:35:53
RT @danrocks4: EEM iShares MSCI Emerging Markets % Change http://t.co/HnMVtnwzR1 $EEM $SDS $JNUG $HAWK #EEM #pennystocks #share
Sentiquant
1 Jul 15 15:00:04
#sentishiftup $WFC $EEM $T $NETE $BLUE $HIMX $QLD $ISR $IBM $ESPR #sentiquant 20150701 18:00:06:479
				
				
By  +Follow October 4, 2013 10:53AM
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