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Emerging Markets ETFs Down Again on China Data

By  +Follow January 9, 2014 11:35AM
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2014 has already proven a bad year for emerging market equities, and Thursday brought another day with stories that are now familiar: emerging market ETFs fall on plunging equities in China and Brazil. The iShares MSCI Emerging Markets Index ETF (EEM) fell just over 1.25 percent in early trading before recovering to losses just under 1 percent.

Driving losses was clearly some of the same culprits that have been in the news since mid-December: China, Brazil, and Turkey.

The iShares FTSE China 25 Index ETF (FXI) was off as much as 2.38 percent before recovering to losses just under 2 percent by early afternoon. The iShares MSCI China Index Fund (MCHI) was also down, losing more than 1.5 percent in early trading. The iShares MSCI Brazil Index ETF ($EWZ) plunged over 2 percent, and the iShares MSCI Turkey Index ETF (TUR) was off around 1.25 percent.

China Stocks Fall to Five-Month Low

The Chinese equities market continues to fall due to a variety of economic figures that indicate contracting growth. The Shanghai Shenzen CSI 300 Index is off almost 9.5 percent in the last month alone.

“China is slowing down; what they don’t want is a hard landing,” said Prudential Financial market strategist Quincy Krosby to Bloomberg by phone. “There’s also an adjustment process as the Fed begins to taper. As the data begin to gain more traction than initially expected, you’d have the Treasury market making adjustments, and that has ramifications in the emerging markets.”

Driving today’s decline could be a few different factors. December inflation numbers showed the rate declining to 2.5 percent in December from 3 percent in November, potentially another sign of an economic slowdown.

Prices could also be depressed in anticipation of a flood of pending IPOs.

“There are many new stocks that will be released so there are liquidity concerns,” said Tebon Securities analyst Zhang Haidong. “There may be 50 new IPOs in January -- this is going to add pressure and weigh on the market.”

Brazil Stocks Follow China

And in another familiar move, declining economic prospects in China led to declining prospects in Brazil, which exports materials to China. The Ibovespa Brasil Sao Paolo Exchange Index fell almost 2.5 percent, marking a decline of over 10 percent since late October.

"Inflation came in lower-than-expected in China, which means a slowdown in consumption. Metal shares are down in Europe, which impacts steelmakers and metal producers here," said Renascença DTVM trader Luiz Roberto Monteiro.

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
Volatility Implied
20 Oct 14 19:31:21
“@ReutersGMF: #growth convergence: After decade of fast growth, emerging economies' growth moderates http://t.co/OracnShfzF” RT $EEM
Joseph Fedorko
20 Oct 14 19:02:43
@Suntimes They do if you li$ten to que$tions objectively, which the $un-Time$ $eem$ to $uddenly not be able to. #BruceRauner #ILGov2014
Jeff Quiggle
20 Oct 14 17:01:47
$MACRO > $TLT $GLD $FXI $JNK $EEM $IWM $QQQ $SPY $USO $FEZ Yesterday > $TLT $QQQ $GLD $SPY $IWM $FXI $JNK $EEM $USO $FEZ
Antonio NaVi
20 Oct 14 15:25:07
$EEM a buscado ruptura ya tres veces pero no puede, Brasil no permite q el índice consolide #FTR1 http://t.co/ydQRw5sAf1
Seeking Alpha
20 Oct 14 14:16:16
Caution - The Russell 2000 May Not Be A Good Hedge For Emerging Markets http://t.co/R3DtQn62LC $IWM $SPY $EEM $UUP
Greg Harmon, CMT
20 Oct 14 13:41:54
$EEM broad consolidation over 40.40 support w/ 39.25/38 below, resistance 41/42.54 http://t.co/iIpmspmxG0
Rosner Stocks
20 Oct 14 11:16:23
$IWM Day High Click Here: http://t.co/SZnYYMKiW6 Also See: $XLI $HAL $EEM $SMH ~
Stoyan Bojinov
20 Oct 14 10:32:19
AWESOME tool for those obsessed with valuation metrics $SPY $EFA $EEM $STUDY >> http://t.co/aIGNskZeCb
ETF Database
20 Oct 14 10:29:54
Worthwhile read here >> Expected 10-Year Returns for Major World Markets >> http://t.co/6IzVcbMm0o $SPY $EFA $EEM
Investors Hangout
20 Oct 14 10:10:20
DennyT: F Basic Chart $F $EEM $AJAC $XLF $SLW.TO http://t.co/4suyT1OBx0
Investors Hangout
20 Oct 14 10:10:19
DennyT: F Basic Chart $F $EEM $AJAC $XLF $SLW.TO http://t.co/FANmrbzboW
DennyT
20 Oct 14 09:46:30
F Basic Chart $F $EEM $AJAC $XLF $SLW.TO Opinion,Stock Chart,High,Recent News,On Radar Stock Quote http://www. http://t.co/ki38sPUHuU
Investors Hangout
20 Oct 14 09:19:44
leahanne: $EEM Emrg Mkts Index MSCI Ishares (EEM) 40.81 http://t.co/0GHWNIZm3M
Investors Hangout
20 Oct 14 09:19:21
leahanne: $EEM Emrg Mkts Index MSCI Ishares (EEM) 40.81 http://t.co/enq5OZIK7q
iHangout
20 Oct 14 09:01:23
http://t.co/vVojvVrNNL leahanne: Xtremepicks Alerts: $EEM Emrg Mkts Index MSCI Ishares (EEM) 40.81 http://t.co/aleiV8jxpT
leahanne
20 Oct 14 08:56:56
$EEM Emrg Mkts Index MSCI Ishares (EEM) 40.81 +0.09 (+0.22%) $SSO $TQQQ $HEMP http://t.co/3Qa4zuAQGI
Extreme Stocks
20 Oct 14 08:38:26
DennyT: SMH Company Info $SMH $TLT $EEM $NLN.TO $NLN.TO http://t.co/2EwhYo8pcL
Investors Hangout
20 Oct 14 08:36:39
DennyT: SMH Company Info $SMH $TLT $EEM $NLN.TO $NLN.TO http://t.co/X5CUKB8Eiu
Investors Hangout
20 Oct 14 08:36:20
DennyT: SMH Company Info $SMH $TLT $EEM $NLN.TO $NLN.TO http://t.co/CNR94rUDiv
Investors Hangout
20 Oct 14 08:35:01
$HAR Short Sales Click Here: http://t.co/Wf0jUwG5Kl Also See: $X $EEM $XLE $EWI ~
DennyT
20 Oct 14 08:25:46
SMH Company Info $SMH $TLT $EEM $NLN.TO $NLN.TO Buy or Sell?,Volume,Current Price,Recent Headlines,Getting Int http://t.co/EWLxAoBc9J
Emerging Money
20 Oct 14 08:22:54
Caution – The Russell 2000 May Not Be A Good hedge For Emerging Markets http://t.co/1AaGk3wdTy $IWM $SPY $EEM #emergingmarkets
Craig Garbers
20 Oct 14 08:11:50
RT @JaredCummans: Check out the ETFs with the largest dividends http://t.co/pwgTOgJkjo $STUDY $SPY $EEM
ETF Godfather
20 Oct 14 08:11:12
RT @JaredCummans: Check out the ETFs with the largest dividends http://t.co/pwgTOgJkjo $STUDY $SPY $EEM
MACRO Y TENDENCIAS
20 Oct 14 08:09:42
$BMA http://t.co/M93a9BCsBR Again fighting against the law of gravity, and ignoring the fiscal and exchange insolvency $ypf $ggal $eem
Jared Cummans
20 Oct 14 08:04:18
Check out the ETFs with the largest dividends http://t.co/pwgTOgJkjo $STUDY $SPY $EEM
Issaquah Capital
20 Oct 14 07:55:24
Brent, $EEM , $DAX sending signals the plebs can't understand.. Watch your ski's.. The pick pockets are in full effect.
OTPicks.com
20 Oct 14 07:42:32
http://t.co/hjgLwIcNgz Emylers: $EEM Up to date company activities and other: Emylers http://t.co/5db0LGrUMX http://t.co/hjgLwIcNgz
OTPicks.com
20 Oct 14 07:42:30
http://t.co/QkCFZ8H3V8 Emylers: $EEM Up to date company activities and other: Emylers http://t.co/1xzRJXNgOh http://t.co/QkCFZ8H3V8
Market Int Center
20 Oct 14 07:40:15
iShares MSCI Emerging Markets Index $EEM Trading Near $40.21 Support Level ( http://t.co/xY0wgOlqkH )
Extreme Stocks
20 Oct 14 07:40:11
Emylers: $EEM Up to date company activities and other http://t.co/uuX9yNpNWv
BlockTradeAlert
20 Oct 14 07:38:59
BLOCK TRADE: $EEM 559,761 shares @ $40.83 [10:38:58]
Investors Hangout
20 Oct 14 07:35:11
Emylers: $EEM Up to date company activities and other http://t.co/BTDGMsLUrn
Investors Hangout
20 Oct 14 07:35:11
Emylers: $EEM Up to date company activities and other http://t.co/tEux5CUI8T
BlockTradeAlert
20 Oct 14 07:34:12
BLOCK TRADE: $EEM 900,000 shares @ $40.81 [10:34:12]
Fernando
20 Oct 14 07:27:48
$SPY 0.48% $EEM 0.22% $IWM 0.83% $QQQ 0.85% $DIA -0.23%
Emylers
20 Oct 14 07:26:43
$EEM Up to date company activities and other important information about $EEM http://t.co/ZwCs7U2lHr
BlockTradeAlert
20 Oct 14 07:23:53
BLOCK TRADE: $EEM 2,450,000 shares @ $40.76 [10:23:52]
Investors Hangout
20 Oct 14 07:03:48
$GOOG Stock Message Board Click Here: http://t.co/z1xXCaIoO6 Also See: $ERX $TEO $EPI $EEM ~
Forex Insight
20 Oct 14 06:44:27
RT @t3live: Michael Gayed on the New Rotation .@pensionpartners $EEM $SPX http://t.co/jwZZ0S2Gxc
Minyanville
20 Oct 14 06:39:28
RT @t3live: Michael Gayed on the New Rotation .@pensionpartners $EEM $SPX http://t.co/jwZZ0S2Gxc
MACRO Y TENDENCIAS
20 Oct 14 05:14:37
"@CESAROMSE: $GGAL http://t.co/ex7g6PZjKP rotten fish to reduce positions, the Argentine government will never be rational $YPF $BMA $EEM "
Stock Forums
20 Oct 14 03:32:23
$FLPC Stock Forum Click Here: http://t.co/dQG3wyGTIq Also See: $SSO $MBLY $TMV $EEM ~
Investors Hangout
20 Oct 14 02:54:53
$EWU Company Info Click Here: http://t.co/zxrKLTE6Ga Also See: $EEM $EXK $EWJ $FB ~
Stock Forums
20 Oct 14 02:32:42
$FAST Exchange Click Here: http://t.co/VkIP4DiNmR Also See: $RCH.TO $IWM $EEM $GOOG ~
Investors Hangout
20 Oct 14 02:16:09
$EWU Bid Click Here: http://t.co/n71z4gjyNy Also See: $WMT $EEM $HAL $VSN.TO ~
Stock Forums
20 Oct 14 00:19:25
$EWJ E.P.S. Click Here: http://t.co/EjABgJL38R Also See: $GDXJ $XIV $SLV $EEM ~
Sleek Money
20 Oct 14 00:07:38
iShares MSCI Emerging Markets Indx $ETF Sees Significant Growth in Short Interest $EEM http://t.co/xRDfioFMzi
Investors Hangout
19 Oct 14 23:49:47
$EEM Last Trade Click Here: http://t.co/DHIffDyPg3 Also See: $FAST $UGA $HD $ROYT ~
US Banking News
19 Oct 14 23:44:13
iShares MSCI Emerging Markets Indx $ETF Sees Significant Growth in Short Interest $EEM http://t.co/g5890tVMoy
				
				
By  +Follow January 9, 2014 11:35AM
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