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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
Market News Desk
2 Sep 14 14:16:11
$EEM: Best Consumer Stocks For Emerging Market Investors http://t.co/UQ4ARmd8Iq http://t.co/IfaV6xgSuM
Jeff Quiggle
2 Sep 14 13:57:35
2 Sep 14 13:37:13
RT @ETFcom: US ETFs Hauled In $15B Flows In August $TLT $IEF $EEM $SPY http://t.co/2iMocZ7kKt
Greg Harmon, CMT
2 Sep 14 13:37:04
$EEM holding at 45 S/R with 48 above and 44/43/42.54 below http://t.co/6JDUr5Kkby
7Twelve Advisors LLC
2 Sep 14 13:33:48
RT @ETFcom: US ETFs Hauled In $15B Flows In August $TLT $IEF $EEM $SPY http://t.co/2iMocZ7kKt
2 Sep 14 13:23:30
US ETFs Hauled In $15B Flows In August $TLT $IEF $EEM $SPY http://t.co/2iMocZ7kKt
Top ETF Funds
2 Sep 14 13:20:15
Investors Aren't Fooled By Brazil's IP Rebound.. http://t.co/YlrUwK4LFc $EEM #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:19:58
Midday index, ETF option volumes.. http://t.co/BBCZx4X3wB $EEM #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:19:42
Is Russia Winning Ukraine 'War'?.. http://t.co/r3pBm6alcT $EEM #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:19:25
Best Consumer Stocks For Emerging Market Investors.. http://t.co/Rh2lMzhlWp $EEM #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:19:09
Stellar Start for a China ETF.. http://t.co/9C5TwlarK5 $EEM #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:18:52
Wild Emerging Market Statistics.. http://t.co/NO8dH02aCI $EEM #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:18:35
Hope it was a great Summer — sunburns and all….. http://t.co/YFye52Rwns $EEM #ETF #ETFs #Stocks
Antonio Pedra
2 Sep 14 13:13:02
En Emergentes, después de un mal 2013, parece que 2014 cuenta de nuevo con la confianza de los inversores $EEM #BRICS http://t.co/4nbVdyYWZT
Sterne Agee
2 Sep 14 13:10:10
Brian Stutland And Carter Worth Like EEM $EEM @SterneAgee http://t.co/3N6LMoophU via @benzinga
2 Sep 14 12:33:46
Sure is nice that $EEM back tested its breakout.
2 Sep 14 12:04:38
RT @CBOE: Active puts @ CBOE; $SPY 10/18/14 190 $EEM 9/20/14 43 $AAPL 8/29/14 102
Market Compass
2 Sep 14 11:16:11
$EEM: Emerging Markets Week in Review http://t.co/UfprKTr8NK http://t.co/HZfdChHrpI
2 Sep 14 11:03:57
$EEM what do you think about EEM's heavy China weighting (20%) compared to other BRIC nations? vs. say $DEM
2 Sep 14 11:01:02
$EEM Article is a bit old but I thought the chart trading recommendation was interesting ("channel" between $35-$50) http://t.co/9GazUd8KlX.
Sheldon McIntyre
2 Sep 14 10:37:46
$EEM $EEB Global composite yield curve flattening. Not a bullish development for emerging markets. http://t.co/Nkp6J3kl29
Investors Hangout
2 Sep 14 10:26:55
lookn4wins: $EEM Volume $EEM Most recent stock chart and http://t.co/7RS02AdUSn
Investors Hangout
2 Sep 14 10:26:54
lookn4wins: $EEM Volume $EEM Most recent stock chart and http://t.co/FQC9TOBcuZ
Financial Headlines
2 Sep 14 10:16:11
$EEM: Why investors will find Ukraine harder to ignore http://t.co/9YjH0skVFL http://t.co/KIZkv0DXKY
2 Sep 14 10:15:51
RT @muathe: [VIDEO REPOST] Weekend Market Analysis 08/31/2014 [PUBLIC] $DJIA $IWM $GDX $XLF $EEM $EWJ $VXX $FXI $TZA $GDXJ $VWO http://t.co…
2 Sep 14 10:06:03
http://t.co/vVojvVrNNL lookn4wins: ZIP CASH TRAIN: $EEM Volume $EEM Most recent stock chart and http://t.co/GWl2iyzBLJ
2 Sep 14 10:00:49
$EEM Volume $EEM Most recent stock chart and technical analysis. $REGN $HAL $SA $ARIA $XLE $ARWR http://stockc http://t.co/nU7r3fDPBz
2 Sep 14 09:48:07
BLOCK TRADE: $EEM 500,000 shares @ $44.92 [12:48:06]
2 Sep 14 09:31:21
$MUX Daily Chart $MUX Most recent stock chart and technical analysis. $CMG $BITA $EEM $IBM $KNDI $SDS http://s http://t.co/0I2jvchUAv
2 Sep 14 09:20:12
Emergentes: ¿rumbo a los máximos de 2011? @CapitalBolsa http://t.co/4A2jlnpWDi $EEM
Stock Updates
2 Sep 14 09:16:11
$EEM: Dividend Growth Working for an Emerging Markets ETF http://t.co/JM4HQaeLVi http://t.co/1ojXARG5Am
2 Sep 14 09:00:11
$DIA SPDR DOW 30 ETF (DIA) 170.75 -0.13 (-0.08%) $ABX $FEYE $EEM http://t.co/LtG68sTSHt
Stock Market Monitor
2 Sep 14 08:16:11
$EEM: Why investors will find Ukraine harder to ignore http://t.co/bha6DjwUNs http://t.co/bIOHI9JdY8
Tino Tatum
2 Sep 14 08:13:28
$EEM October 18th calls at 92$ a contract are looking pretty nice
Top ETF Funds
2 Sep 14 07:57:52
Stock Picks For An Emerging Markets Selloff.. http://t.co/099XHqaFJV $EEM #ETF #ETFs #Stocks
Investors Hangout
2 Sep 14 07:46:10
jim50: $EEM Open Date=Aug-29-2014 Open=45.18 High=45.24 http://t.co/aAMW1fzuWG
Investors Hangout
2 Sep 14 07:46:10
jim50: $EEM Open Date=Aug-29-2014 Open=45.18 High=45.24 http://t.co/vmccnpRkAb
honeykanii ♥
2 Sep 14 07:43:33
RT @CBOE: Active puts @ CBOE; $SPY 10/18/14 190 $EEM 9/20/14 43 $AAPL 8/29/14 102
2 Sep 14 07:24:56
$EEM Open Date=Aug-29-2014 Open=45.18 High=45.24 Low=45 Close=45.06 Volume=39793800 http://t.co/ngGlAjgJGc
Stock News Updates
2 Sep 14 07:16:15
$EEM: For Investors, India Looking Even Better Than Before http://t.co/YiPy8rV1E3 http://t.co/n2TACgQwJt
2 Sep 14 07:11:06
"@CESAROMSE: $ZS_F http://t.co/qvv6d7bEJp $EEM $SPY $$SSO $DIA $AAPL $"
Cinthia Murphy
2 Sep 14 07:07:31
The Great Emerging Markets Rebound | http://t.co/9LMJuhkn5V http://t.co/UJejGg26N6 #ETFs $EEM $VWO $IEMG $DGRE $DEM
Investors Hangout
2 Sep 14 07:05:04
$EEM Bid Size http://t.co/PCNs68CmcI Also See: $TOU.TO $EBAY $HPQ $AKAM ~
2 Sep 14 06:58:10
@RiskReversal Buying $EEM Oct 45 calls, buying $FNSR, $FEYE, and staying long $TWTR (selling upside calls against position).
2 Sep 14 06:55:48
@Michael_Khouw Buying the $EEM Oct 45 calls for $1 or less.
Stock Forums
2 Sep 14 06:55:21
$EEM News http://t.co/7hLKTeEJUv Also See: $IBB $SMH $YRI.TO $DISH ~
Langan Stocks
2 Sep 14 06:48:57
$EEM Financials http://t.co/VY3GJGDhVp Also See: $GE $MBLY $GLD $ORE.TO ~
2 Sep 14 06:45:48
$EEM Volume http://t.co/rekUq6lNWF Also See: $AEM $IYR $ABX $SIPC ~
IH News Desk
2 Sep 14 06:45:10
$EEM Day High http://t.co/aF2pbTbhRz Also See: $MO $XLY $GNCP $BTU ~
2 Sep 14 06:43:08
$EEM Yield http://t.co/CKyWyt8H6l Also See: $DRYS $ITUB $DBC $QTMM ~
By  +Follow January 9, 2014 11:35AM



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