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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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for EEM
PennyStock Zone
27 Nov 14 14:44:52
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
PennyStock Zone
27 Nov 14 12:43:04
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
$HUG $AVAGE ❗️❗️❗️
27 Nov 14 09:40:22
RT @darealseem: Listen to $eem ft lil Rob - basic by $eemsWORLDTheMIXTAPE #np on #SoundCloud https://t.co/MMYJQBVFfr
Financial Iceberg
27 Nov 14 08:45:43
SP500 and Emerging Markets ( IVV - EEM ): Emerging Near Breaking Resistance Trendline ? $SPY, $SPX, $ES_F, $EEM http://t.co/ZmVCTQHE2h
$EEM
27 Nov 14 08:42:46
Listen to $eem ft lil Rob - basic by $eemsWORLDTheMIXTAPE #np on #SoundCloud https://t.co/MMYJQBVFfr
Financial Iceberg
27 Nov 14 06:16:36
SP500 and Emerging Markets ( IVV - EEM ): Emerging Near Breaking Resistance Trendline ? $SPY, $SPX, $ES_F, $EEM http://t.co/WWvtWNOUhw
Mike Zaccardi, CMT
27 Nov 14 05:35:52
YTD TR: $SPY +14.0% $IWM +3.6% $EFA -1.5% $EEM +2.1% $AGG +5.5% $TLT +22.3% $HYG +3.7%
lookn4wins
26 Nov 14 21:29:07
EEM +2.04% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/erHsJenyJu
chartguy89
26 Nov 14 20:35:55
EEM +2.04% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 11/26/2014 22:35:56 EEM Sto http://t.co/4oqBHC8Lq2
OTPicks.com
26 Nov 14 19:50:22
http://t.co/NYsxQOU64w lookn4wins: EEM +2.04% Stock Charts $EEM Electricite et Eaux: http://t.co/H9S4xDGHTB http://t.co/NYsxQOU64w
Eternity101
26 Nov 14 19:47:05
Why the Fed’s bond buying program has led to pricey assets http://t.co/6DUfjDB90z $HYG $TLT $JNK $IEF $EEM
Ben Silverberg
26 Nov 14 19:34:29
Leading market sectors higher Wednesday included: $IYR $SMH $XLU $QQQ $EEM $KOL $IBB $XLV $TLT
OTPicks.com
26 Nov 14 17:45:51
http://t.co/NYsxQOU64w Emylers: $EEM Up to date company activities and other: Emylers http://t.co/t4Y9okbjD7 http://t.co/NYsxQOU64w
Jeff Quiggle
26 Nov 14 17:43:29
$MACRO > $SPY $QQQ $IWM $FEZ $TLT $FXI $EEM $GLD $JNK $USO Yesterday > $SPY $QQQ $IWM $FEZ $TLT $FXI $EEM $GLD $JNK $USO
ShortStockVolume.com
26 Nov 14 14:32:29
Top Shorted Stocks 11/26/14... 20. $TLM 66.58% 21. $GDXJ 66.37% 22. $SO 66.22% 23. $XLK 65.27% 24. $XLU 65.19% 25. $EEM 65.14%
ShortStockVolume.com
26 Nov 14 14:32:27
Top Shorted Stocks 11/26/14... 25. $EEM 65.14% http://t.co/z36kHMNciS
Market Trader Daily
26 Nov 14 13:01:35
Nov 26-2014 Wed Mkt Close $DJI 17828.46 +13.39 $SPX 2072.80 +5.77 $NAS 4787.31 +29.06 $FXI 40.93 $SOX 683.48 $CHN 22.0 $EEM 42.35 $VIX 12.10
Cirrus Radiatus
26 Nov 14 12:11:57
Check out my Two-Dimensional #ETF Trendscreener (1 Pic.) $SPY $EEM $GDX $EWZ $XLE $USO $UNG $IYR $QQQ $IWM $XLU http://t.co/TMPcfB0Kbz
Alvaro
26 Nov 14 12:06:43
$EEM + 1,21% $EWW negative
Julian
26 Nov 14 11:04:56
es la psicologia lo que hay que tradear en $EEM ... hay acciones como $ITUB $BBD que recuperaron el 60% de todo lo que cayo en septiembre
Investors Hangout
26 Nov 14 11:04:28
Emylers: $EEM Up to date company activities and other http://t.co/nB74YUhdsi
Investors Hangout
26 Nov 14 11:04:15
Emylers: $EEM Up to date company activities and other http://t.co/I3qdXPetvS
Emylers
26 Nov 14 10:55:04
$EEM Up to date company activities and other important information about $EEM http://t.co/x9aKfyYWII
iHangout
26 Nov 14 10:37:18
lookn4wins: ALERTS, HOT STOCKS & CHARTS: EEM +2.04% Stock Charts $EEM Electricite et Eaux http://t.co/p7FZIvCdbI
lookn4wins
26 Nov 14 10:35:35
EEM +2.04% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/GrVERSiDrY
PennyStock Zone
26 Nov 14 10:19:14
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
Cutlass
26 Nov 14 09:51:52
RT @BlockTradeAlert: BLOCK TRADE: $EEM 500,000 shares @ $42.32 [12:49:30]
BlockTradeAlert
26 Nov 14 09:49:31
BLOCK TRADE: $EEM 500,000 shares @ $42.32 [12:49:30]
Jawad Mian
26 Nov 14 09:07:04
Must Read on EM Equities http://t.co/RV3tfzc9ZO via @EMostaque $EEM
lookn4wins
26 Nov 14 09:05:18
$NUGT 200 Simple Moving Average $NUGT Most recent stock chart and technical analysis. $X $PLUG $EEM $BBRY $NHM http://t.co/XjXAuAVxkn
chartguy89
26 Nov 14 08:17:25
NLNK Stock Chart $NLNK $S $EEM $BB.TO http://t.co/3UX1jBvmZ1 http://t.co/GNxGPA6naf
lookn4wins
26 Nov 14 07:51:04
$CLF TA $CLF Most recent stock chart and technical analysis. $ANV $EFA $MMM $EEM $CREE $ONCS http://stockchart http://t.co/TiETjRPd1Z
Two Knights Trading
26 Nov 14 07:21:28
There is some serious action today in emerging market equity and debt options market. Investors betting on a rotation in 2015? $EEM
danrocks
26 Nov 14 07:15:10
$SUPN On Radar $KGC $EDZ $SLW $PBR $EEM http://t.co/uUM7knfC3G
Investors Hangout
26 Nov 14 07:11:48
Stock_Tracker: $EEM Company News Strong bull trend reaches http://t.co/xroWtUkQfP
Investors Hangout
26 Nov 14 07:11:47
Stock_Tracker: $EEM Company News Strong bull trend reaches http://t.co/da5H009W5v
Al Sabogal
26 Nov 14 07:02:01
$EEM strong!
Cirrus Radiatus
26 Nov 14 06:12:38
Check out my Two-Dimensional #ETF Trendscreener (1 Pic.) $SPY $GDX $EEM $IWM $USO $XLF $XLE $EWZ $QQQ $GDXJ $XLU http://t.co/686CovcJln
Seeking Alpha
26 Nov 14 05:47:32
The Best Emerging Market Dividend ETF http://t.co/QT7dAi4u6g $DGRE $EEM $DGS $EMDG $DVYE $EDIV $EMHD $HILO $DEM
AdosenTrading
26 Nov 14 05:46:22
RT @stt2318: Opened up http://t.co/51LoB1Kkcn for everyone one more day! My daily setups catalogued by strategy.. Check it out! $SPY $QQQ …
Furlicity  #IVU
26 Nov 14 04:59:42
RT @stt2318: Opened up http://t.co/51LoB1Kkcn for everyone one more day! My daily setups catalogued by strategy.. Check it out! $SPY $QQQ …
stt2318
26 Nov 14 04:52:20
Opened up http://t.co/51LoB1Kkcn for everyone one more day! My daily setups catalogued by strategy.. Check it out! $SPY $QQQ $IWM $EEM
Investors Hangout
25 Nov 14 22:29:11
lookn4wins: EEM -0.68% Stock Charts $EEM Electricite et Eaux http://t.co/KLG9rSZ2i3
Investors Hangout
25 Nov 14 22:29:11
lookn4wins: EEM -0.68% Stock Charts $EEM Electricite et Eaux http://t.co/nxfk2EECpi
lookn4wins
25 Nov 14 22:27:04
EEM -0.68% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/RWarWIZw8G
Jeff Quiggle
25 Nov 14 22:20:39
$MACRO > $SPY $QQQ $IWM $FEZ $TLT $FXI $EEM $GLD $JNK $USO Yesterday > $SPY $QQQ $IWM $FEZ $FXI $TLT $EEM $GLD $JNK $USO
Ben Silverberg
25 Nov 14 18:58:33
Leading market sectors lower Tuesday included: $XLE $TAN $ITB $XLB $EEM $FXI $RSX $MOO $KOL $USO.
Van Castle
25 Nov 14 17:19:18
RT @harmongreg: $EEM rejection confirmed lower, 41/40.4/39.25 support, resistance 42.54/43/44 http://t.co/PSzahbeTWY
Me_Sean
25 Nov 14 16:38:02
Rule #2 Never force a trade just to get some action. Cash doesn't lose you money. $spy $dia $qqq $iwm $tlt $tbt $eem $EWW
Me_Sean
25 Nov 14 16:32:08
Rule #1 It is never a bad time to hedge.$spy $dia $qqq $iwm $tlt $tbt $eem $EWW
				
				
By  +Follow October 4, 2013 10:53AM
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