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Emerging Markets ETFs Down Again on China Data

By  +Follow January 9, 2014 11:35AM
Tickers Mentioned:

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
Langan Stocks
30 Oct 14 22:18:19
$CAT % Change Click Here: http://t.co/fcTzhl7nCf Also See: $EEM $SOL $ACHN $FXI ~
Langan Stocks
30 Oct 14 21:13:34
$BDCL P/E Ratio Click Here: http://t.co/YHSfqOvcAT Also See: $EEM $GM $GGAL $TVIX ~
30 Oct 14 20:58:47
IF i was managing outside $, id have gold miners, id have $VGK, some emerging markets like $VWO $EEM and Latin America $ILF n id sleep good
30 Oct 14 20:52:11
Fucc how tuff u tryna $eem
30 Oct 14 20:24:37
$ATRA Ask Size Click Here: http://t.co/Y8IroIl0Tf Also See: $EEM $DUST $RWLK $XME ~
Joachim Dressler
30 Oct 14 20:15:22
RT @ETFalpha: #China Consumer ETF $CHIQ relative to $EEM #Chart http://t.co/g2TyZDtOJy
30 Oct 14 19:39:46
$AMZN E.P.S. Click Here: http://t.co/8kWOPIJMbk Also See: $GILD $EEM $TIP $XLF ~
30 Oct 14 19:27:57
$AMZN Day High Click Here: http://t.co/WV6KmWRrL6 Also See: $XLY $GE $EEM $ELRA ~
Stock Relay
30 Oct 14 19:06:33
$APT Financials Click Here: http://t.co/5rYIBeFSFZ Also See: $XLY $EEM $JNUG $FCX ~
30 Oct 14 19:05:15
http://t.co/hjgLwIcNgz Stock_Tracker: $EEM Recent News U.S. markets reach firmer: Sto http://t.co/21QJa8sRu5 http://t.co/hjgLwIcNgz
30 Oct 14 19:05:13
http://t.co/QkCFZ8H3V8 Stock_Tracker: $EEM Recent News U.S. markets reach firmer: Sto http://t.co/h3PgoE0ST3 http://t.co/QkCFZ8H3V8
30 Oct 14 18:34:35
$AMAT EOD Data Click Here: http://t.co/h9T9nY1mm7 Also See: $EEM $COST $LNKD $ACHN ~
30 Oct 14 17:53:39
$ABX Prev Close Click Here: http://t.co/bpelgW3BV3 Also See: $GOOGL $TSLA $EEM $INFY ~
Jake Catskill
30 Oct 14 15:09:47
Burkina army imposes interim government after crowd burns parliament http://t.co/2LHiYZXH1Z via @reuters Not good. $EEM
Dimitra DeFotis
30 Oct 14 14:58:02
Schwab: Time Is Now For Emerging Markets Investing http://t.co/5H2ViDaq0V $SMIN $EPI $EWZ $EEM $ARGT $EZA
30 Oct 14 14:11:08
RT @DeFotis: Emerging Market Must Reads: Russia EU Recon Flights, Mexico Resilience http://t.co/5XXSiFI7ns $SMIN $RUSS $EEM $EWW $TUR #Fed …
Jeff Quiggle
30 Oct 14 14:04:34
Greg Harmon, CMT
30 Oct 14 13:50:21
$EEM back at 200sma, test time, 42.54/43/44 resistance, support 41/40.40/39.25 http://t.co/QpSrqONp1V
Stock Relay
30 Oct 14 13:34:37
$JASO Message Board Posts Click Here: http://t.co/FdVGuYlYBo Also See: $CTIX $XLY $EEM $RSP ~
30 Oct 14 12:36:11
BLOCK TRADE: $EEM 1,365,000 shares @ $41.97 [15:36:10]
Investors Hangout
30 Oct 14 12:25:32
$INTC Dividend Click Here: http://t.co/54CGhsqIno Also See: $GILD $EEM $ANV $SLTD ~
30 Oct 14 12:19:11
RT @BlockTradeAlert: BLOCK TRADE: $EEM 1,200,000 shares @ $41.94 [15:08:33]
30 Oct 14 12:09:27
Emrg Mkts Index MSCI Ishares (EEM) 42.00 $EEM iShares Launches Beyond BRIC ETF - ETF News And Commentary Zacks http://t.co/CZ2yQ489dr
30 Oct 14 12:08:33
BLOCK TRADE: $EEM 1,200,000 shares @ $41.94 [15:08:33]
Investors Hangout
30 Oct 14 12:01:50
$INFY Ideas Click Here: http://t.co/c5vx7NsVso Also See: $AMBA $AA $SMN $EEM ~
Large Void Bot
30 Oct 14 12:00:22
Popular: $AVNR, $NUS, $AGIO, $IRWD, $XLV, $BBY, $JWN, $EEM
30 Oct 14 11:46:58
RT @BlockTradeAlert: BLOCK TRADE: $EEM 500,000 shares @ $42.03 [14:42:14]
30 Oct 14 11:42:14
BLOCK TRADE: $EEM 500,000 shares @ $42.03 [14:42:14]
Stock Relay
30 Oct 14 11:37:45
$INFY Last Trade Click Here: http://t.co/novmLXwVNg Also See: $EEM $F $AMGN $ABBV ~
Chasing Stars
30 Oct 14 11:36:40
$ILMN Dividend Click Here: http://t.co/XtUEevttsC Also See: $X $EEM $PLUG $DEE.TO ~
Zen Trader Mx
30 Oct 14 11:24:04
$EEM dándose la vuelta en la resistencia con volumen fuerte. Abusados.
30 Oct 14 11:18:10
EEM 2.99 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 10/30/2014 13:18:13 EEM Stock http://t.co/k8d46kUd3M
Stock Relay
30 Oct 14 11:15:33
$INCC Ideas Click Here: http://t.co/dqMTHhrulv Also See: $SVXY $CAT $PCLN $EEM ~
Attain Capital
30 Oct 14 11:02:19
Which one is your perfection? http://t.co/9hfnrKpEyx $ES_F $SPY $EEM $DIA $QQQ $AGG
Zen Trader Mx
30 Oct 14 10:57:53
$EEM en resistencia clave
Auto Binary option
30 Oct 14 10:40:58
RT @Stock_Tracker1: $IG Filings Click Here: http://t.co/vBx7KOLCBK Also See: $EEM $SLV $TNA $EWZ ~
30 Oct 14 10:39:26
$IBB Day High Click Here: http://t.co/daul32v6n8 Also See: $CLF $EEM $XLE $LVS ~
30 Oct 14 10:33:58
$IG Filings Click Here: http://t.co/vBx7KOLCBK Also See: $EEM $SLV $TNA $EWZ ~
Investors Hangout
30 Oct 14 10:15:30
$HGD.TO Day High Click Here: http://t.co/1m8cujscRh Also See: $IBM $GLW $DBA $EEM ~
Boardwalk Securities
30 Oct 14 10:00:40
$Dust #Dslv flying high as $SLV takes faster pace down then $GLD $AGQ suffering also, surprised $EWZ acting well, not sure about other $EEM
30 Oct 14 10:00:31
BLOCK TRADE: $EEM 1,200,000 shares @ $41.88 [13:00:30]
Stock Forums
30 Oct 14 09:49:23
$HYG Bid Click Here: http://t.co/UFeulG8upO Also See: $GRCU $GOOG $PCLN $EEM ~
30 Oct 14 09:47:25
$CDTI Clean Diesel Technologies (CDTI) 2.79 +1.11 (+66.07%) $VMW $EEM $XLK http://t.co/56FYSzm8Dm
30 Oct 14 09:44:39
$CELG Opinion Click here to find out if $CELG is a buy hold or sell. Watching these stocks. $DIS $NEM $EEM $EB http://t.co/TlGky7QYDs
30 Oct 14 09:39:31
$HD Chart Click Here: http://t.co/KWZf0h6vWj Also See: $LVS $EEM $FNV $SLB ~
30 Oct 14 09:36:29
Must-know: Hedge fund positions in emerging markets ETFs http://t.co/bpnHXPoZko $VWO $EEM
Stock Relay
30 Oct 14 09:32:53
$GRCU Tick Click Here: http://t.co/ZjItiHtC91 Also See: $EEM $AMAT $UVXY $ABX ~
30 Oct 14 09:07:16
Implications Of A Stronger U.S. Dollar http://t.co/xdTguTJYmW $USD $SPX $EEM
30 Oct 14 09:00:32
$PG Procter & Gamble Company (PG) 86.75 +0.21 (+0.24%) $EEM $VALE $FSLR http://t.co/rmsSV3bBQC
30 Oct 14 08:48:35
$GDXJ alot of talk going around about this one $UTX $SBUX $TASR $EEM $JNJ http://t.co/EbJO4QNfYS
By  +Follow January 9, 2014 11:35AM



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