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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
Rosner Stocks
20 Aug 14 05:27:40
$MUX.TO Financials http://t.co/JQnvHKAVLg Also See: $SUMR $IWM $EEM $DIA ~
Norberto
20 Aug 14 05:01:15
RT @pugtrader: $EEM UPDATE Major technical hurdle, if ... W&S http://t.co/3wAbH9FAOE
Gil Cantu
20 Aug 14 04:58:28
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Daphne Unsted
20 Aug 14 04:33:57
RT @Chasing__Stars: $MTVX Tick http://t.co/b7oeENfqP8 Also See: $EEM $TASR $YOKU $UCO ~
Chasing Stars
20 Aug 14 04:22:50
$MTVX Tick http://t.co/b7oeENfqP8 Also See: $EEM $TASR $YOKU $UCO ~
matt svetlecic
20 Aug 14 04:02:30
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Mark Yusko
20 Aug 14 04:01:26
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Ricardo RW
20 Aug 14 03:45:22
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Matthew Warden
20 Aug 14 03:24:09
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Macronomics
20 Aug 14 03:20:46
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Barbarian Capital
20 Aug 14 03:19:58
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Market Monitor
20 Aug 14 03:16:09
$EEM: Waiting for a Dip With the Egypt ETF http://t.co/Xr7ku7ZT4y http://t.co/hpWjBUXYUY
Bret Furgason
20 Aug 14 03:04:16
$EEM chart https://t.co/XFJZtCEWsM via http://t.co/Zg4DzrrgbG OBV leveling out. Price at big inflection point
iHangout
20 Aug 14 03:03:35
http://t.co/X6MMwAJjms Stock_Tracker: Stock DD Board: Emrg Mkts Index MSCI Ishares (EEM) 45.15 $EEM http://t.co/JcbwlXgOM8
Investors Hangout
20 Aug 14 02:58:06
$KNDI Tick http://t.co/HYAXyoermP Also See: $MBLY $VTI $RE.TO $EEM ~
Cirrus Radiatus
20 Aug 14 02:35:10
Most liquid #ETF setting New Year High's vs. $QQQ : $EEM $IYR $VWO $XLV $XLY YTD http://t.co/SOHGJBiFNk
Dr. Duru
20 Aug 14 01:33:31
T2108 Update – A Gut-Check On Sentiment As The #SP500 Rolls On $QQQ $IWM $KATE $LNKD $EWG $VXX $VIX $WIX $GRUB $EEM http://t.co/RtQzxLj27G
TalkMarkets
20 Aug 14 01:33:31
T2108 Update – A Gut-Check On Sentiment As The #SP500 Rolls On $QQQ $IWM $KATE $LNKD $EWG $VXX $VIX $WIX $GRUB $EEM http://t.co/TqJioZItNJ
Rosner Stocks
20 Aug 14 01:26:30
$IBM Stock Forum http://t.co/QE80U3ABDr Also See: $DRYS $EEM $SDS $KMI ~
Biz News Pioneer
20 Aug 14 01:16:11
$EEM: Overview: What stretched valuations mean for investors http://t.co/ekIJQ2dWrX http://t.co/Tat7iQKXfV
Prometheus AM
20 Aug 14 00:33:45
RT @rareviewmacro: Long $EEM vs. short $SPY ratio - the short & long term charts shows the breakout potential & upside asymmetry. http://t.…
Prometheus AM
20 Aug 14 00:31:02
RT @rareviewmacro: China Mobile: 2nd largest $FXI wgt; vertical move o/n; breaks 3-touch points on LT chart; billions in appetite. $EEM htt…
Langan Stocks
20 Aug 14 00:23:03
$HK Current Price http://t.co/tTWX79IBeq Also See: $EEM $TSLA $JD $IYT ~
Pug Trader
19 Aug 14 23:25:27
$EEM UPDATE Major technical hurdle, if ... W&S http://t.co/3wAbH9FAOE
Chasing Stars
19 Aug 14 22:38:20
$GOOGL Investor Opinions http://t.co/DlhsoTckYH Also See: $RSX $EEM $FFIV $LOW ~
Stock Forums
19 Aug 14 21:34:30
$GDX 52Wk High http://t.co/OiV7zTlnWQ Also See: $HD $DGLY $EEM $UCO ~
Gustavo Villa V.A.
19 Aug 14 20:49:59
@bennyrv también long $EEM $AAXJ
Biz News Pioneer
19 Aug 14 20:16:09
$EEM: Another Index Provider Mulls Russia Adjustments http://t.co/In0TvczTaW http://t.co/aMc5FxLHEH
Gustavo Villa V.A.
19 Aug 14 20:05:50
Tampoco los mercados emergentes $EEM recibían mucho amor los últimos meses, hoy en sus mejores niveles de mas de 3 años
Colin Macleod
19 Aug 14 20:00:35
August 19 2014 P&F Triple Top Breakout http://t.co/rinOrECXsh $EEM $CX $BBD $IYR $PETM
Rosner Stocks
19 Aug 14 19:43:57
$EEM Dividend http://t.co/yWiQcTNuVX Also See: $XLU $WTSL $HFC $TNA ~
nasdaqfan
19 Aug 14 19:38:41
$EPI Exchange http://t.co/2lruFBCEsO Also See: $NQ $NQ $INTC $EEM ~
Langan Stocks
19 Aug 14 19:32:25
$EEM Yield http://t.co/nlBVo34dTK Also See: $URI $AMD $RSX $AA ~
Investors Hangout
19 Aug 14 19:30:32
$EEM P/E Ratio http://t.co/ukOFUi8Cvw Also See: $ECAU $DIS $UMDD $HGSH ~
nasdaqfan
19 Aug 14 19:23:28
$EEM Stock Message Board http://t.co/KWNOZHaB83 Also See: $BIDU $BAA $XHB $SLW ~
Chasing Stars
19 Aug 14 19:17:23
$EEM Change http://t.co/5fHv58IW12 Also See: $TOL $MINE $HNU.TO $CLF ~
PolgarStocks
19 Aug 14 19:15:32
$EEM Stock Forum http://t.co/HFm5qtKrpS Also See: $SIRI $FFIV $JRJC $MO ~
Stock Forums
19 Aug 14 19:05:53
$EEM Day High http://t.co/W1z90pO6tN Also See: $SBUX $TOL $UNG $YOKU ~
ShyG..✈
19 Aug 14 19:02:42
RT @Trill4LIFE_YNIC: Everything $eem all good but it ain't... I ju$t roll up n try to forget it all .
PPBI
19 Aug 14 18:45:59
RT @SeekingAlpha: An Unconventional Risk-Management Tool http://t.co/IZu0GtvPYG $SCHZ $VOO $EFA $EEM $IEFA $IEMG
Financial Updates
19 Aug 14 18:16:10
$EEM: Brazil Equities Due For Correction http://t.co/qrFhqrGIlR http://t.co/GyLUcUNcw6
carusom
19 Aug 14 18:04:26
$CHL jan 2016 80 calls $EEM march 2015 48 calls $ISRG 480 WC average up to $2 $GMCR 119 WC $GOOGL 605 WC
Colin Macleod
19 Aug 14 17:55:35
August 19 2014 New 52-Week Highs http://t.co/CVLItYdLyR $AAPL $EEM $QQQ $HD $GILD $ITUB $LOW $JBLU $AKS $STLD $TQNT
Chasing Stars
19 Aug 14 17:38:50
$CSCO Short Sales http://t.co/FTcIxoehAS Also See: $MU $EEM $RSX $JRJC ~
Action Jackson
19 Aug 14 17:34:38
@KatiaPorzo $eem $teo $pze #markets #bonds #investing $spy #Argentina rt"*ARGENTINA TO SEEK ALTERNATIVE FORMS TO PAY EXCHANGE BONDHOLDERS "
Stock Forums
19 Aug 14 17:25:48
$CSCO Filings http://t.co/yJhC1OIwyG Also See: $SLXP $EEM $POT $FEYE ~
Trill Life  ✈
19 Aug 14 17:22:55
Everything $eem all good but it ain't... I ju$t roll up n try to forget it all .
OTPicks.com
19 Aug 14 17:21:32
http://t.co/QzFp1WC0ss DennyT: FCX Insider Disclosure $FCX $EEM $GS $SLV $UNG: DennyT http://t.co/lyQitpKDjX http://t.co/QzFp1WC0ss
OTPicks.com
19 Aug 14 17:21:32
http://t.co/QzFp1WC0ss Stock_Tracker: $EEM Recent Headlines Emerging market ETFs still: Sto http://t.co/YyHlelsGvW http://t.co/QzFp1WC0ss
Stock Forums
19 Aug 14 17:18:28
$CORN Message Board Posts http://t.co/G5tizWDnkH Also See: $EEM $EVSV $CORN $DGAZ ~
				
				
By  +Follow January 9, 2014 11:35AM
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