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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
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
PennyStock Zone
25 Nov 14 16:26:23
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
Dee
25 Nov 14 14:34:09
RT @harmongreg: $EEM rejection confirmed lower, 41/40.4/39.25 support, resistance 42.54/43/44 http://t.co/PSzahbeTWY
Proffitt Financial
25 Nov 14 14:09:31
RT @harmongreg: $EEM rejection confirmed lower, 41/40.4/39.25 support, resistance 42.54/43/44 http://t.co/PSzahbeTWY
Proffitt Financial
25 Nov 14 14:09:27
RT @allstarcharts: zero trend in china right now from a structural perspective. Emerging Markets as a group $EEM same thing. Nothing to do …
Greg Harmon, CMT
25 Nov 14 13:56:34
$EEM rejection confirmed lower, 41/40.4/39.25 support, resistance 42.54/43/44 http://t.co/PSzahbeTWY
Seeking Alpha
25 Nov 14 13:37:23
WisdomTree Emerging Markets SmallCap Dividend ETF: First In Class http://t.co/UFQP9TAtGx $EWX $EEMS $EEM $DGS
PennyStock Zone
25 Nov 14 13:28:22
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
BlockTradeAlert
25 Nov 14 12:55:03
BLOCK TRADE: $EEM 908,985 shares @ $41.81 [15:55:02]
BlockTradeAlert
25 Nov 14 12:33:39
BLOCK TRADE: $EEM 606,400 shares @ $41.85 [15:33:39]
J.C. Parets
25 Nov 14 11:22:56
zero trend in china right now from a structural perspective. Emerging Markets as a group $EEM same thing. Nothing to do there. no touch
Investors Hangout
25 Nov 14 09:35:10
lookn4wins: $EEM Parabolic SAR $EEM Most recent stock chart http://t.co/bc3e2lm2DH
lookn4wins
25 Nov 14 09:27:52
$EEM Parabolic SAR $EEM Most recent stock chart and technical analysis. $TWTR $AUY $AA $AAPL $GGAL $AAPL http: http://t.co/OA5rEjQ5sA
chartguy89
25 Nov 14 09:22:06
SPXU Stock Chart $SPXU $EEM $HD $TSLA http://t.co/3UX1jBvmZ1 http://t.co/4L6t8yfnd8
Cutlass
25 Nov 14 09:07:00
RT @BlockTradeAlert: BLOCK TRADE: $EEM 664,600 shares @ $42.04 [10:49:19]
				
				
By  +Follow January 9, 2014 11:35AM
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