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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
Dimitra DeFotis
20 Nov 14 12:29:26
Nigeria Political Chaos Breeds Uncertainty http://t.co/ohXEW8VykM $NGE $EEM #Africa Thanks: @gwill29
Rareview Macro
20 Nov 14 12:26:12
Asia ex-Japan clustered w/ "death-cross" next week; another data point in the $EEM vs. $SPY theme. $JPY $USO http://t.co/3ZSl0H5Pj6
bithead
20 Nov 14 12:22:48
The next chase for yield will be in Emerging Markets & Far East. 60% of #bithead_portfolio is invested there. $EEM $EWY $EWT $EPI $EWH
lookn4wins
20 Nov 14 11:00:06
EEM 2.94 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this p http://t.co/9j4pUorpmc
OneChicago
20 Nov 14 10:55:01
$EEM 20141121 Block Trade: 5000 trade. ~$20.6 MM notional value.
Day Trade Alerts
20 Nov 14 09:34:27
via #AlertTrade SHORT Seller Alert $EEM - iShares MSCI EMERGING MARKET #ShortSeller #Stocks http://t.co/VS8RO1tb5N
Etos Etana
20 Nov 14 08:55:12
RT @IHPosts: Stock_Tracker: $EEM Recent News 10 stocks bought by a $160 http://t.co/Bxf5KPDi7V
Investors Hangout
20 Nov 14 08:52:32
Stock_Tracker: $EEM Recent News 10 stocks bought by a $160 http://t.co/sl1KMNlKQ7
Investors Hangout
20 Nov 14 08:52:19
Stock_Tracker: $EEM Recent News 10 stocks bought by a $160 http://t.co/Bxf5KPDi7V
Etos Etana
20 Nov 14 08:45:13
RT @IHPosts: DennyT: CRM Insider Transactions $CRM $XLB $VXX $EEM http://t.co/vjnMffkr6u
Investors Hangout
20 Nov 14 08:37:26
DennyT: CRM Insider Transactions $CRM $XLB $VXX $EEM http://t.co/jI7zkq3VZE
Investors Hangout
20 Nov 14 08:37:19
DennyT: CRM Insider Transactions $CRM $XLB $VXX $EEM http://t.co/vjnMffkr6u
DennyT
20 Nov 14 08:35:39
CRM Insider Transactions $CRM $XLB $VXX $EEM $LOCO Buy or Sell?,Candlesticks,Stock,Headlines,On Radar Stock Qu http://t.co/UdEpR04IuP
Charles Sizemore
20 Nov 14 08:28:16
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
danrocks
20 Nov 14 08:12:00
$EEM On Alert $SYY $AMGN $ATVI $GMCR $CRM http://t.co/vFTGozoKBk
Jake13
20 Nov 14 07:50:22
$XLP Barchart Opinion Click here to find out if $XLP is a buy hold or sell. Watching these stocks. $SPXU $EEM http://t.co/1C1iXF83A1
Daniel Guevara
20 Nov 14 07:30:45
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
Alex P.
20 Nov 14 07:21:15
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
ronfeir
20 Nov 14 07:17:21
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
Investors Hangout
20 Nov 14 07:16:57
danrocks: $OXGN Buzz $EYES $FCX $GDXJ $MIK $EEM http://t.co/5aJShRwKlc
Investors Hangout
20 Nov 14 07:16:47
danrocks: $OXGN Buzz $EYES $FCX $GDXJ $MIK $EEM http://t.co/sFS1lRoBT6
Dan Ion Oprea
20 Nov 14 07:09:54
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
danrocks
20 Nov 14 07:09:00
$OXGN Buzz $EYES $FCX $GDXJ $MIK $EEM http://t.co/AYuH2LJFWM
Alberto Pegoraro
20 Nov 14 07:08:59
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
Jacob Wolinsky
20 Nov 14 07:06:51
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
Etos Etana
20 Nov 14 07:06:09
RT @IHPosts: DennyT: MIK Nasdaq $MIK $PBR $EEM $ALK $XLB http://t.co/HhlpKAw4mK
rizwan riaz
20 Nov 14 07:05:27
RT @YahooFinance: Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
Investors Hangout
20 Nov 14 07:04:34
DennyT: MIK Nasdaq $MIK $PBR $EEM $ALK $XLB http://t.co/HhlpKAw4mK
Investors Hangout
20 Nov 14 07:04:27
DennyT: MIK Nasdaq $MIK $PBR $EEM $ALK $XLB http://t.co/jk6LeQrmyi
Yahoo Finance
20 Nov 14 07:02:27
Hunting for Value: CAPE Around the World http://t.co/PeoBel1ZFx via @charlessizemore $EEM $SPY http://t.co/0sO9YvlPzX
Jake13
20 Nov 14 06:57:00
$YPF Opinion Today Click here to find out if $YPF is a buy hold or sell. Watching these stocks. $OXGN $EEM $SL http://t.co/Pl2PhxFlEV
iHangout
20 Nov 14 06:38:37
http://t.co/a7S0ZZgFj1 DennyT: ZIP CASH TRAIN: MIK Nasdaq $MIK $PBR $EEM $ALK $XLB http://t.co/ArxM3m505H
DennyT
20 Nov 14 06:34:54
MIK Nasdaq $MIK $PBR $EEM $ALK $XLB Sell?,Volume,Current Price,News,On Watch Stock Quote http://www.otcmarkets http://t.co/ep6NKSnpko
PennyStock Zone
20 Nov 14 06:06:01
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
Victor Riesco
20 Nov 14 05:41:24
Getting tight here. Watch for break, either way. $EEM http://t.co/mYJNLewyGy
Mike Zaccardi, CMT
20 Nov 14 05:07:31
$EWZ +1.6% premarket with $EFA and $EEM down. Another day of absolute and relative bounce
Robin Murray MD CFII
20 Nov 14 04:12:27
#PMI #FAILS world wide $FXI $FEU $EWJ #Emerging #Markets high risk #MACD #Death #Cross #Down #SELL #Short $EEM #ETF http://t.co/O11BiIvti9
Chasing Stars
20 Nov 14 02:44:30
$EWZ Day High Click Here: http://t.co/96ej5n6Yxt Also See: $XIV $EEM $MCD $SMN ~
The Legacy News
20 Nov 14 00:59:50
iShares MSCI Emerging Markets Indx $ETF Short Interest Down 18.8% in October $EEM http://t.co/zb449MQ96I
Chasing Stars
20 Nov 14 00:59:19
$EEM Dividend Click Here: http://t.co/tsan910pxx Also See: $PG $T $ELTP $MBLY ~
Investors Hangout
20 Nov 14 00:55:14
$EEM Open Click Here: http://t.co/RMhkqCDG0M Also See: $IGRW $ALBKY $TUNG $ALL ~
Stock Forums
20 Nov 14 00:52:25
$EEM P/E Ratio Click Here: http://t.co/nKtCO7Habo Also See: $HDSI $LVGI $VPOR $MINE ~
Options TradingIQ
19 Nov 14 23:00:08
What Dean Karnazes Can Teach Us About Option Trading http://t.co/Ohq3QsfxR1 $AAPL $FB $BAC $EEM My #blog archive
lookn4wins
19 Nov 14 21:42:14
EEM 3.19 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this p http://t.co/UYBzUylZmj
OTPicks.com
19 Nov 14 21:04:22
http://t.co/NYsxQOU64w DennyT: MNK Income Statement $MNK $XLF $DIS $EEM $XLI: DennyT http://t.co/NBmoYgJNV0 http://t.co/NYsxQOU64w
Claus
19 Nov 14 18:45:30
$EEM no long-term trend in years really https://t.co/SROoueFhpa
Jeff Quiggle
19 Nov 14 17:51:40
$MACRO > $SPY $QQQ $IWM $FEZ $FXI $TLT $EEM $JNK $GLD $USO Yesterday > $QQQ $SPY $IWM $FXI $TLT $EEM $FEZ $JNK $GLD $USO
#000000 & #FFFFFF
19 Nov 14 17:11:07
My $napchat $tory i$ gonna be pure @the1975 $ong$ in the dark to make it $eem like I'm in the concert 😭😭
hedgopia
19 Nov 14 16:25:11
.@MattGarrett3 Probably why $EEM cannot get its act together. Carry trade in reverse?
PennyStock Zone
19 Nov 14 16:21:47
http://t.co/HMYdF9BSqT <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
				
				
By  +Follow January 9, 2014 11:35AM
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