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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
ValueWalk
27 Apr 15 16:20:46
Looking for "safe" yield? Emerging Markets is the answer, Says Barclays http://t.co/f78xkoLuJN $EEM $VWO $JNK http://t.co/4Gtv0JQ8W9
Trading Derivatives
27 Apr 15 16:16:33
RT @ETFtrends: Weekly Fund Flows From Indxx http://t.co/ThcQlSUQR5 #ETFs #ETF $SPY $VTI $DBEF $EWJ $EEM
ETF Trends
27 Apr 15 16:05:16
Weekly Fund Flows From Indxx http://t.co/ThcQlSUQR5 #ETFs #ETF $SPY $VTI $DBEF $EWJ $EEM
dailystockplays.com
27 Apr 15 15:47:18
RSI Over 70 http://t.co/xLDkCVHoZh $EEM $FXI $SID $AMZN $YNDX $ARRS $VEA $CIG $SLM $BHP $EWH $EDC $NVO $CCJ $NUAN $NRZ $MTU $IEFA
Pepe Plata
27 Apr 15 15:38:16
RT @IHNewsDesk: $RAX Stock Message Board Updated Monday, April 13, 2015 1:11:00 PM $EEM $FB $LQD $CBIS http://t.co/BhMvNWKQVw
TrendLizard
27 Apr 15 14:43:56
Todays updates $QQQ $JO $GLD $SLV $UNG $UUP $EEM $EWG $FXI $IBB $XLK http://t.co/QbWWqXhzEw http://t.co/dGR8uNyrpv
dailystockplays.com
27 Apr 15 14:36:11
Bearish Doji http://t.co/LSe7CURZG3 $PAGP $HA $YELP $QIHU $EL $EEM $EQR $ROVI $SOHU $EWK $RENN $PIE $SANM $IDCC $PRGS $VGT $PRGX $DCT
Adam Harding, CFP®
27 Apr 15 13:55:27
After 2 years of lackluster returns in $EEM and $EFA, diversified regional #equity approaches are starting to seem productive. #finally
361 Capital
27 Apr 15 13:36:20
$EFA +0.5% > $EEM +0.4% > $QQQ -0.1% > $SPY -0.3% > $IWM -1.1%. $IBB -4%, $XLV -1.8%. $GLD +2%. $AMAT -8% as DoJ scuttles TokyoElectron acq.
Pam Bidwell
27 Apr 15 13:30:30
Trade: Bearish VERTICAL on $EEM: MAY15 45/43. http://t.co/Eta6oUudq2
J Beck Investments
27 Apr 15 12:54:11
RT @whey2muscle: Can The Emerging Markets (EEM) Continue To Show Relative Strength? http://t.co/VTY4pcK5dg … by @jbeckinvest $EEM $SPY
Richard
27 Apr 15 12:51:16
$EEM chart https://t.co/XnEkDOEHYS via http://t.co/FMlomn29yf " Juan Menchaca " en la diaria
My New Phone
27 Apr 15 12:36:29
RT @SeekingAlpha: Weak U.S. Economic Data Is Bullish For Emerging Markets http://t.co/b5qXAg1lJO $EEM $EWT $EWZ
EMQQindex
27 Apr 15 12:19:36
RT @shuli_ren: Goldman: This Rally Has Legs; 3 Ways To Buy #China http://t.co/BzLnv2ij3n via @barronsonline $FXI $MCHI $EEM $HSCEI $HSI
Pug Trader
27 Apr 15 12:10:01
$EEM - Analysis Formations LT Swing / Trending Upper channel approaching MACD SHOUTS SELL Stand by for #LONG $EDZ http://t.co/mkYlQWJnhw
Yogesh Rathi
27 Apr 15 12:01:44
RT @SeekingAlpha: Weak U.S. Economic Data Is Bullish For Emerging Markets http://t.co/b5qXAg1lJO $EEM $EWT $EWZ
thewife
27 Apr 15 11:24:35
RT @SPYder_Crusher: Historical Valuations via @blackrock - Bund, Gilt, Japan GB at 100th percentile of pice range - $RSX, $EEM cheap http…
TrendsInvesting
27 Apr 15 11:17:25
Upward trend on #Emergingmarkets $EEM $VWO $EDC $EMB $SCHE - up 3.11% in 7 days - http://t.co/GhvkkvXBF1 http://t.co/kaZuEptWFF
Danny Jassy
27 Apr 15 11:16:56
Historical Valuations via @blackrock - Bund, Gilt, Japan GB at 100th percentile of pice range - $RSX, $EEM cheap http://t.co/7xIVXYocxJ
Seeking Alpha
27 Apr 15 11:05:56
Weak U.S. Economic Data Is Bullish For Emerging Markets http://t.co/b5qXAg1lJO $EEM $EWT $EWZ
Interactive Brokers
27 Apr 15 10:54:12
#IBTI Macro - Sight Beyond Sight: Market Thoughts http://t.co/64X398iCuz $USO $COIL $XOP $XLE $TLT $SPY $SPX $EEM $EWZ $INDA $INDY $FXI
Reshma Kapadia
27 Apr 15 10:41:42
RT @shuli_ren: Goldman: This Rally Has Legs; 3 Ways To Buy #China http://t.co/BzLnv2ij3n via @barronsonline $FXI $MCHI $EEM $HSCEI $HSI
Long-Short Hedgie
27 Apr 15 10:32:46
#Took #Profit May 42 Calls $EEM ....+285%
TrendsInvesting
27 Apr 15 10:32:16
Upward trend on #Diversified $EEM $VWO $SCHE $VPL $DEM - up 3.34% in 7 days - http://t.co/F9wXyUGC4Q http://t.co/dcl1aVfc7H
Cutlass
27 Apr 15 10:17:44
RT @SwatOptions: $EEM trader buys 28k++ JUN.19 CALL 44.5 and sells AUG.21 CALL 47 for 0.46$ debit
TrendsInvesting
27 Apr 15 10:17:39
Upward trend on #Equity #Emergingmarkets $EEM $VWO $EDC $SCHE $DEM - up 3.57% in 7 days - http://t.co/whPyImVJpC http://t.co/epaHcq9j8a
TrendsInvesting
27 Apr 15 10:17:13
Upward trend on #Diversified #Equity $EEM $VWO $SCHE $VPL $DEM - up 3.36% in 7 days - http://t.co/0F6fR8Ixk8 http://t.co/bDyGihab42
chartguy89
27 Apr 15 10:09:57
EEM +10.76% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 04/27/2015 12:10:00 EEM St http://t.co/IpGln051Sz
Options Network
27 Apr 15 09:58:46
$EEM trader buys 28k++ JUN.19 CALL 44.5 and sells AUG.21 CALL 47 for 0.46$ debit
Cutlass
27 Apr 15 09:58:04
RT @SwatOptions: $EEM big size position I open @swat_premium its MAY.15 CALL 44 at 0.23$ entries - now at 0.67$ #HOLDING http://t.co/SiA3T…
Options Network
27 Apr 15 09:47:59
$EEM big size position I open @swat_premium its MAY.15 CALL 44 at 0.23$ entries - now at 0.67$ #HOLDING http://t.co/SiA3TjK7xg
Cutlass
27 Apr 15 09:46:57
RT @SwatOptions: $EEM trader rolls other 55k from MAY.15 CALL 45 into 60K aug.21 call 47 AT 0.48$ - See why I'm loaded on CALLs??
Eugenio
27 Apr 15 09:45:42
"@seeitmarket: New Post - "Emerging Markets: Chart Says This Week Is Critical" http://t.co/QZizY3WJBB by @BartsCharts" $EEM $EDC $EDZ $OIL
Options Network
27 Apr 15 09:44:46
$EEM trader rolls other 55k from MAY.15 CALL 45 into 60K aug.21 call 47 AT 0.48$ - See why I'm loaded on CALLs??
Cutlass
27 Apr 15 09:44:24
RT @SwatOptions: $EEM trader rolls 55k from JUN.19 CALL 43 into 60K JUN.19 CALL 44.5 at ..95$
Options Network
27 Apr 15 09:33:38
$EEM trader rolls 55k from JUN.19 CALL 43 into 60K JUN.19 CALL 44.5 at ..95$
Unknown
27 Apr 15 09:33:35
RT @seeitmarket: New Post - "Emerging Markets: Chart Says This Week Is Critical" http://t.co/iSPFwEHcG8 by @BartsCharts $EEM $SPY $UUP $OIL…
Eugenio Simón
27 Apr 15 09:20:54
Emerging Markets (EEM): Chart Says This Week Is Critical by @BartsCharts via @seeitmarket http://t.co/3WKPxp1wpl $EEM $SPY $UUP $OIL $STUDY
Where's My Phone
27 Apr 15 09:17:11
RT @seeitmarket: New Post - "Emerging Markets: Chart Says This Week Is Critical" http://t.co/iSPFwEHcG8 by @BartsCharts $EEM $SPY $UUP $OIL…
James Bartelloni
27 Apr 15 09:16:46
RT @seeitmarket: New Post - "Emerging Markets: Chart Says This Week Is Critical" http://t.co/iSPFwEHcG8 by @BartsCharts $EEM $SPY $UUP $OIL…
See It Market
27 Apr 15 09:14:01
New Post - "Emerging Markets: Chart Says This Week Is Critical" http://t.co/iSPFwEHcG8 by @BartsCharts $EEM $SPY $UUP $OIL $STUDY
Bradley
27 Apr 15 09:05:06
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/ZQ39mj0XU6
J Beck Investments
27 Apr 15 08:34:23
RT @seeitmarket: Can The Emerging Markets (EEM) Continue To Show Relative Strength? http://t.co/jRtzEPEIjy by @jbeckinvest $EEM $SPY $STUDY
TrendsInvesting
27 Apr 15 08:32:07
Upward trend on #Emergingmarkets $EEM $VWO $EMB $EDC $DEM - up 3.19% in 6 days - http://t.co/nL296PCF0j http://t.co/bN3wfClfDQ
Kora Reddy
27 Apr 15 08:27:22
@TraderRL23 you r better of with $heem than $eem #imho
#HelpYouGetGAINS
27 Apr 15 08:13:41
ETF Stats For March 2015 - Trading Activity Picks Up http://t.co/QQxb3hEasS … $SPY $IWM $QQQ $EEM $XLE $EFA $VXX $TLT
WLST.com
27 Apr 15 08:02:17
Why Wage Growth Could Increase Soon $EEM #Stocks http://t.co/S6DviHMrfm http://t.co/ZvdfupAf5y
Top ETF Funds
27 Apr 15 08:01:36
Ray Dalio Likes China.. http://t.co/g4Vqa2mH2L $EEM #ETF #ETFs #Stocks
Top ETF Funds
27 Apr 15 08:01:19
Why Wage Growth Could Increase Soon.. http://t.co/R8eT1gtkGv $EEM #ETF #ETFs #Stocks
Hill Capital Mgt
27 Apr 15 08:00:00
RT @TraderRL23: $EEM 5 and a half years of sideways action.... The move out of this should be huge.... http://t.co/IOoUEZA11K
				
				
By  +Follow October 4, 2013 10:53AM
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