logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Emerging Market ETFs Bounce on Government Shutdown

By  +Follow October 4, 2013 10:53AM
Share:
Tickers Mentioned:

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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for EEM
wininstocks2014
31 Oct 14 22:19:14
EEM 3.38 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 11/01/2014 00:19:15 EEM Stock http://t.co/cbMktIrN5h
Jeff Quiggle
31 Oct 14 21:38:21
$MACRO > $IWM $TLT $QQQ $SPY $FXI $JNK $EEM $FEZ $GLD $USO Yesterday > $TLT $IWM $QQQ $SPY $FXI $JNK $EEM $GLD $FEZ $USO
chartguy89
31 Oct 14 20:51:28
EEM 3.38 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 10/31/2014 22:51:28 EEM Stock http://t.co/nhwPXmhbtv
wininstocks2014
31 Oct 14 19:30:29
EEM 3.38 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 10/31/2014 21:30:30 EEM Stock http://t.co/Zo8adwKv9V
TalkMarkets
31 Oct 14 18:53:04
The Stock Whisper Of The Day: $EEM $YHOO $EWJ http://t.co/wfKGZJpgwT
Andrea Manea, CFA
31 Oct 14 16:36:21
RT @MikeZaccardi: October total returns: $SPY +3.8% $IWM +8.1% $EFA +0.9% $EEM +3.5% $AGG +0.5%
Mike Zaccardi, CMT
31 Oct 14 16:24:36
October total returns: $SPY +3.8% $IWM +8.1% $EFA +0.9% $EEM +3.5% $AGG +0.5%
LNG Economist
31 Oct 14 12:46:26
RT @CBOE: Active puts @ CBOE: $IWM 11/22/14 110 $SPY 11/7/14 197 $EEM 1/15/16 35
Ms. J!
31 Oct 14 12:40:35
RT @CBOE: Active puts @ CBOE: $IWM 11/22/14 110 $SPY 11/7/14 197 $EEM 1/15/16 35
CBOE
31 Oct 14 12:40:24
Active puts @ CBOE: $IWM 11/22/14 110 $SPY 11/7/14 197 $EEM 1/15/16 35
Tweed
31 Oct 14 12:38:32
RT @BlockTradeAlert: BLOCK TRADE: $EEM 2,000,000 shares @ $42.09 [15:37:53]
BlockTradeAlert
31 Oct 14 12:37:54
BLOCK TRADE: $EEM 2,000,000 shares @ $42.09 [15:37:53]
jim50
31 Oct 14 12:33:42
$IYT P/E Ratio Click Here: http://t.co/8Nif3cq6Qb Also See: $PCLN $KO $EEM $FCX ~
Becky Hiu
31 Oct 14 12:12:15
With the USD so EXPENSIVE, EMs will benefit. :) Thank QE Japan. $EEM
BlockTradeAlert
31 Oct 14 11:45:38
BLOCK TRADE: $EEM 687,500 shares @ $42.13 [14:45:36]
Stock Relay
31 Oct 14 11:28:41
$JASO Tick Click Here: http://t.co/pstgDwpLzZ Also See: $PCLN $AXCG $EEM $DIA ~
Issaquah Capital
31 Oct 14 11:15:22
If this was a rip roaring global bull mkt $EEM would be the leader into the clubhouse... Running on fumes..
DeidreZune
31 Oct 14 10:59:28
I'm asked what stks will Japan's 1 Trillion dollar GPIFund will buy internationally $SPX + #EU + $EEM #Largest $AAPL $BABA $V $GOOGL
Etos Etana
31 Oct 14 10:49:18
RT @IHPosts: danrocks: $SWRF On Alert $AMAT $XLY $UNG $EEM $BITA http://t.co/hoe20Vp1pk
Etos Etana
31 Oct 14 10:49:01
RT @IHPosts: clayton: $EEM 42.28 http://t.co/UKNKHtXOKf
Tweed
31 Oct 14 10:47:52
RT @BlockTradeAlert: BLOCK TRADE: $EEM 549,000 shares @ $42.14 [13:47:05]
BlockTradeAlert
31 Oct 14 10:47:06
BLOCK TRADE: $EEM 549,000 shares @ $42.14 [13:47:05]
Investors Hangout
31 Oct 14 10:42:22
danrocks: $SWRF On Alert $AMAT $XLY $UNG $EEM $BITA http://t.co/G0C0zGQQ0P
Investors Hangout
31 Oct 14 10:42:16
danrocks: $SWRF On Alert $AMAT $XLY $UNG $EEM $BITA http://t.co/hoe20Vp1pk
Investors Hangout
31 Oct 14 10:41:11
clayton: $EEM 42.28 http://t.co/Rxmp3aLV0m
Investors Hangout
31 Oct 14 10:41:10
clayton: $EEM 42.28 http://t.co/UKNKHtXOKf
clayton
31 Oct 14 10:26:09
$EEM 42.28 http://t.co/deQqsLjfJm
Proffitt Financial
31 Oct 14 10:25:39
$EEM - Long set up..
leahanne
31 Oct 14 10:22:44
$UNG US Natural Gas (UNG) 20.39 +0.33 (+1.65%) $DXJ $EEM $SPXL http://t.co/t73JjGjRpm
danrocks
31 Oct 14 10:19:05
$SWRF On Alert $AMAT $XLY $UNG $EEM $BITA http://t.co/srTYEWMVzm
Cutlass
31 Oct 14 10:18:40
RT @BlockTradeAlert: BLOCK TRADE: $EEM 1,600,000 shares @ $42.08 [13:00:49]
Tweed
31 Oct 14 10:01:08
RT @BlockTradeAlert: BLOCK TRADE: $EEM 1,600,000 shares @ $42.08 [13:00:49]
BlockTradeAlert
31 Oct 14 10:00:50
BLOCK TRADE: $EEM 1,600,000 shares @ $42.08 [13:00:49]
FMD Capital
31 Oct 14 09:53:09
RT @ETFdb: Check out this week's ETF Scorecard! http://t.co/zpFBuzQAsC $SPY $EFA $EEM $GLD $IWM $DIA $QQQ @fabiancapital @ChristianMagoon @…
Zubeyr Kamil Açıksar
31 Oct 14 09:51:57
RT @ETFdb: Check out this week's ETF Scorecard! http://t.co/zpFBuzQAsC $SPY $EFA $EEM $GLD $IWM $DIA $QQQ @fabiancapital @ChristianMagoon @…
Stoyan Bojinov
31 Oct 14 09:51:53
RT @ETFdb: Check out this week's ETF Scorecard! http://t.co/zpFBuzQAsC $SPY $EFA $EEM $GLD $IWM $DIA $QQQ @fabiancapital @ChristianMagoon @…
ETF Database
31 Oct 14 09:51:41
Check out this week's ETF Scorecard! http://t.co/zpFBuzQAsC $SPY $EFA $EEM $GLD $IWM $DIA $QQQ @fabiancapital @ChristianMagoon @sbojinov
Cutlass
31 Oct 14 09:42:07
RT @BlockTradeAlert: BLOCK TRADE: $EEM 675,000 shares @ $42.06 [12:39:18]
BlockTradeAlert
31 Oct 14 09:39:19
BLOCK TRADE: $EEM 675,000 shares @ $42.06 [12:39:18]
clayton
31 Oct 14 09:39:15
$HALO Change Click Here: http://t.co/KKYWIQJEsV Also See: $CMI $EEM $MBLY $RSP ~
leahanne
31 Oct 14 09:32:45
$TWX Time Warner Inc (TWX) 79.67 +0.02 (+0.03%) $HPQ $GE $EEM http://t.co/ZBbOtLQs7s
Stock Relay
31 Oct 14 09:22:03
$IBM Stock Message Board Click Here: http://t.co/9KO9mb5jQT Also See: $PCLN $HD $EEM $PLUG ~
Tweed
31 Oct 14 09:21:59
RT @BlockTradeAlert: BLOCK TRADE: $EEM 1,000,000 shares @ $42.29 [10:56:27]
Stock Relay
31 Oct 14 09:13:24
$IBM Market Cap Click Here: http://t.co/i4VicTqzzx Also See: $EWZ $ELRA $ATRA $EEM ~
lendar79
31 Oct 14 08:53:14
RT @WallStJesus: $EEM BIG TIME PRINT -- looks like player sells 40,000 Mar15 $38 puts @ $0.79 & buys 110,000 Mar15 $46.5 calls @ $0.30 -- …
Stock Relay
31 Oct 14 08:50:27
$HYG Current Price Click Here: http://t.co/Z8NpFVaWaU Also See: $NUGT $MCD $EEM $GDXJ ~
BlockTradeAlert
31 Oct 14 08:33:37
BLOCK TRADE: $EEM 675,000 shares @ $42.22 [11:33:37]
lookn4wins
31 Oct 14 08:13:31
$LNKD Daily Chart $LNKD Most recent stock chart and technical analysis. $EEM $DDD $GPRO $BITA $RSP $ARIA http: http://t.co/wmZKjVay2M
Investors Hangout
31 Oct 14 08:09:43
danrocks: $EEM On Alert $SMH $LVS $YRCW $EWZ $AMAT http://t.co/xUWwvuVa1I
Anthony
31 Oct 14 08:09:14
RT @WallStJesus: $EEM BIG TIME PRINT -- looks like player sells 40,000 Mar15 $38 puts @ $0.79 & buys 110,000 Mar15 $46.5 calls @ $0.30 -- …
				
				
By  +Follow October 4, 2013 10:53AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.