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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
Rareview Macro
23 Sep 14 07:07:21
Sample cover page of Sight Beyond Sight #hedgefund #trading #forex #bonds #stocks $SPY $TLT $GLD $EUR $EEM $JNK $AAPL http://t.co/ZoOnejnP2q
iHangout
23 Sep 14 07:06:18
http://t.co/Vv1sYDyeQn DennyT: The Hunt for the Next 10 Bagger: CNET Basic Chart $CNET $TNA $EEM $ACHN $LNKD http://t.co/TgCowL2CtA
BlockTradeAlert
23 Sep 14 07:04:34
BLOCK TRADE: $EEM 580,000 shares @ $42.90 [10:04:34]
BlockTradeAlert
23 Sep 14 07:01:34
BLOCK TRADE: $EEM 665,331 shares @ $42.87 [10:01:34]
DennyT
23 Sep 14 07:00:20
CNET Basic Chart $CNET $TNA $EEM $ACHN $LNKD Sell?,Chart,Current Price,Recent Headlines,any other opinions on http://t.co/Z2FrI0M1IC
Andrew Nyquist
23 Sep 14 06:52:07
RT @seeitmarket: New Post: "Emerging Markets Update: BRICs Nearing Critical Juncture (Charts)" http://t.co/drtbRyEw8b by @andrewnyquist $EE…
Travis Howard
23 Sep 14 06:50:07
$EEM Large call trade valued at over $115,000 http://t.co/t7AS6l4TnZ
Karl Snyder, CMT
23 Sep 14 06:49:22
$EEM failed breakout early Sept some support at 42 but looks like further downside to 40.50 http://t.co/uzHbckjll1
See It Market
23 Sep 14 06:19:30
New Post: "Emerging Markets, BRIC Charts Nearing Critical Juncture" http://t.co/drtbRyEw8b by @andrewnyquist $EEM $STUDY
Andrew Nyquist
23 Sep 14 06:15:42
My latest technical update on the BRICs and Emerging Markets: http://t.co/hNX6Hswhch $EEM $FXI $RSX $EWZ $SPY $STUDY
Sheldon McIntyre
23 Sep 14 06:02:08
RT @seeitmarket: New Post: "August Financial Markets Review: Stocks, Commodities, Currencies & Econ Data" http://t.co/kgqWyTPGsz $SPY $EEM …
Dr. Duru
23 Sep 14 05:27:20
%stocks>40DMA=32% A Bearish Chill. http://t.co/vKhDwb1OW6 $QQQ $EEM $CAT $TUR $SCTY $BIDU $RAX $Z $RIO $MNST $SPY #T2108 #T2107
PennyMann
23 Sep 14 04:38:31
Options high volume: $AAPL C, $BAC C, $C C, $EEM P, $F P, $FB mixed, $QQQ P, $SPY P, $TWTR C, $VALE C, and $YHOO C
Dr. Duru
23 Sep 14 04:33:22
T2108 Update – A Bearish Chill $SPY $VIX $QQQ $EEM $TUR $SCTY $Z $RIO $CAT $RAX $BIDU $MNST http://t.co/KOrvKCmj5j
TalkMarkets
23 Sep 14 04:33:22
T2108 Update – A Bearish Chill $SPY $VIX $QQQ $EEM $TUR $SCTY $Z $RIO $CAT $RAX $BIDU $MNST http://t.co/QGDIqCxNak
FinGraphs
23 Sep 14 04:31:14
RT @fgusequity: $EEM Potential intermediate top in an Uptrend on an Investor's View : W-D-Hourly charts http://t.co/xHYSnkre0A
FinGraphs US Equity
23 Sep 14 04:31:11
$EEM Potential intermediate top in an Uptrend on an Investor's View : W-D-Hourly charts http://t.co/xHYSnkre0A
♡Adriannah's GodMom♡
23 Sep 14 04:06:01
RT @iAmMarquise_: $eem Like Keeping It 💯 Da Hardest Thing 2 Do Nowadays ..
Seeking Alpha
23 Sep 14 03:31:36
The Fed Kills Emerging Markets For Profit http://t.co/38VMyv5XrN $EEM $VWO $EDC $EDZ $SCHE $IEMG $EEV $ADRE $EUM $EET $GMM $EEME $DBEM
Robin Murray MD CFII
23 Sep 14 03:28:07
#Shorts beat #emerging #markets like a rented mule yesterday #STAY #AWAY $EEM - http://t.co/15D7jYeHTK
Stock_Tracker
23 Sep 14 02:46:39
Emrg Mkts Index MSCI Ishares (EEM) 42.80 $EEM SmarTrend Watching for Potential Rebound in Shares of iShares MS http://t.co/a0darqNEBL
Colin McLean
23 Sep 14 01:40:54
Emerging markets continuing quiet meltdown. The ETF, $EEM, a good indicator, down 6% this month. http://t.co/67WbKb5pKq
Dr. Duru
23 Sep 14 01:39:42
%stocks>40DMA=32%. A Bearish Chill. http://t.co/csxlyAYDFo $SPY $QQQ $EEM $CAT $TUR $SCTY #T2108 $BIDU $RAX $Z $RIO #T2107 $MNST
TalkMarkets
23 Sep 14 00:50:38
Emerging Bear? $EEM $SPY http://t.co/d5DdflL7E6
chartguy89
22 Sep 14 22:48:47
EEM 3.26 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 09/23/2014 00:49:04 EEM Stock http://t.co/zkixgtdG7G
Alvaro
22 Sep 14 21:35:52
Emerging markets could get a boost tomorrow after China data $EEM $EWW
☜ Scottie Pimpin'
22 Sep 14 21:22:20
$eem Like Keeping It 💯 Da Hardest Thing 2 Do Nowadays ..
Simondiamond
22 Sep 14 21:12:18
Still short $EEM since 45 (average), looking for more downside. #tactical
iHangout
22 Sep 14 20:39:33
http://t.co/jYcEVtZYAh chartguy89: Stock Charts: EEM 3.26 Stock Charts $EEM Electricite et Eaux de http://t.co/yXsVoFPUKh
chartguy89
22 Sep 14 20:20:21
EEM 3.26 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 09/22/2014 22:20:38 EEM Stock http://t.co/lV4iGMRsf3
Stock_Tracker
22 Sep 14 20:17:00
Emrg Mkts Index MSCI Ishares (EEM) 42.80 $EEM SmarTrend Watching for Potential Rebound in Shares of iShares MS http://t.co/NwnpUdtS9n
Cydney Gardner-B
22 Sep 14 20:07:56
RT @mecbands: @_taybands @voteforcydney boaf of yhu guyz $eem a lil bit mad lolz
⚪️✖️TaYlOr〰➰
22 Sep 14 20:07:04
RT @mecbands: @_taybands @voteforcydney boaf of yhu guyz $eem a lil bit mad lolz
Ⓜ️ec
22 Sep 14 20:04:23
@_taybands @voteforcydney boaf of yhu guyz $eem a lil bit mad lolz
Chloe Cho
22 Sep 14 19:48:21
RT @JakeCatskill: RT @chloechotv Sign of China expanding gives markets relief http://t.co/VMKVQCemyF via @fastFT [ $FXI head fake tmr $EEM…
Justin Pulitzer
22 Sep 14 19:41:23
RT @JakeCatskill: RT @chloechotv Sign of China expanding gives markets relief http://t.co/VMKVQCemyF via @fastFT [ $FXI head fake tmr $EEM…
Jake Catskill
22 Sep 14 19:40:14
RT @chloechotv Sign of China expanding gives markets relief http://t.co/VMKVQCemyF via @fastFT [ $FXI head fake tmr $EEM ]
Derek Hernquist
22 Sep 14 19:38:36
"@tonywelch17: Beta trends aren't set in stone. #emergingmarkets = low beta, #europe & #japan = high beta http://t.co/C8tKx0woSF” $vwo $eem
Ben Woodward, CFA
22 Sep 14 19:26:25
$EEM The emerging markets are breaking down technically after a long rally from March to August http://t.co/OTLqSRW81k
OTPicks.com
22 Sep 14 18:51:10
http://t.co/hjgLwIcNgz danrocks: $SLV Picking Up MOMO $EFA $EEM $TBT $RSX $USO: danrocks http://t.co/YgBEuQ56Ky http://t.co/hjgLwIcNgz
OTPicks.com
22 Sep 14 18:51:08
http://t.co/QkCFZ8H3V8 danrocks: $SLV Picking Up MOMO $EFA $EEM $TBT $RSX $USO: danrocks http://t.co/3RxNJxSbdH http://t.co/QkCFZ8H3V8
Andrew Nyquist
22 Sep 14 18:49:46
New Post: "Emerging Markets In Focus: BRICs Nearing Critical Juncture" http://t.co/UMzhWVNhPu via @seeitmarket $EEM $RSX $EWZ $FXI #charts
Play
22 Sep 14 17:28:31
$EEM Everyone Bearish right now... Hmmm... I wonder what the MM's are going to do?
Mike $loan
22 Sep 14 17:27:48
$eem$ legit http://t.co/HBPVqZaLDW
Aaron
22 Sep 14 17:27:16
$eem heck of an interesting pivot confluence 2-3% away http://t.co/HtcncXNgdL
ETF Trends
22 Sep 14 17:20:08
Emerging Asia #ETFs Can Shake Off Effects of Rising U.S. Rates http://t.co/AcGEh0Mweb #interestrates #emergingmarkets $GMF $EEM $EPI $FXI
Tom Lydon
22 Sep 14 17:15:23
Emerging Asia #ETFs Can Shake Off Effects of Rising U.S. Rates http://t.co/rwJNsVIKwz #interestrates #emergingmarkets $GMF $EEM $EPI $FXI
Jeff
22 Sep 14 16:52:40
@largevoid @sarcbot $EEM should not be pulling down $DANG, its the correlation that is doing it maybe.
Jeff
22 Sep 14 16:50:50
@largevoid @sarcbot I just checked, $DANG is not part of $EEM
Large Void
22 Sep 14 16:44:45
@tenaciousvalor @sarcbot I think you may underestimate the effect of $EEM pulling chinese stocks down with the tide.
				
				
By  +Follow January 9, 2014 11:35AM
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