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Turkey, China Stocks Drag Down Emerging Markets Again

By  +Follow December 19, 2013 1:28PM
Tickers Mentioned:

The iShares Emerging Markets Index ETF (EEM) dropped over 1.5 percent on Thursday, showing losses the day after the long-awaited announcement of the tapering of quantitative easing.

However, the downward pressure on global stock markets appears to be driven by factors other than concerns of the Federal Reserve’s policy making. In a story similar to that on Tuesday, it appears as though plunging equities markets in Turkey and China are the greater causes of Thursday’s decline.

Fed Tapers Bond-Buying Program

The decision to roll back the rate at which the Fed would purchase bonds by $10 billion a month to $75 billion a month was announced by Ben Bernanke. He also reassured markets that interest rates would stay at or near zero into the future, even beyond the point where unemployment fell below 6.5 percent.

This news about interest rates, paired with general optimism based on a healthy American economy, is generally being cited as one of the primary factors driving the major spike experienced by American stock markets immediately after Bernanke’s announcement. And EEM joined in that rally, spiking 2 percent in less than 10 minutes after the 2 pm announcement and providing further evidence that the taper announcement is most likely not creating a great deal of downward pressure on global markets.

Turkey’s Saga Continues

The corruption probe in Turkey took on a new tenor Wednesday as 10 police commanders leading the investigation were suspended. News out of Turkey now indicates that the corruption saga could be part of a larger political struggle between an Islamist movement led by cleric Fethullah Gulen, who currently resides in Pennsylvania, and forces within the government including Prime Minister Recep Tayyip Erdogan. The movement is believed to have allies in the police and judiciary, prompting the backlash Wednesday by Erdogan.

Regardless of what lies at the source of the political struggle, it continues to hurt Turkish equities. The iShares MSCI Turkey Index ETF (TUR) fell almost 4.5 percent on Thursday, making losses since Tuesday’s dawn raids that led to the arrest of the sons of three cabinet ministers over 8.5 percent.

China Stocks Decline for Eighth Straight Day

Chinese equities continued a losing streak that appears to have the potential to last two straight weeks as major indicies declined for the eighth consecutive day. China ETFs were down accordingly, with the iShares FTSE China 25 Index ETF (FXI) off almost 2 percent and the iShares MSCI China Index Fund (MCHI) declining over 1.75 percent.

Driving the losses are concerns that China’s crackdown on credit markets will hold back economic growth as the cost of funding increases.

“Liquidity is still tight at the end of the year and there’s still downward pressure due to new stock supply in January,” said Zhang Haidong, an analyst at Tebon Securities Co. in Shanghai. “Until we see concrete evidence that the economy is going to be strong again, the market will remain weak.”

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
17 Sep 14 06:34:18
Idea de trading con los CFDs de Mercados Emergentes (EEM) - See more at: http://t.co/LvZn2quVcO @Saladeinversion $EEM
17 Sep 14 06:14:30
T2108 Update – It Just Took One Man To Light Up The Market Tinder?! $AAPL $EEM $UVXY $SPY $FXA http://t.co/3mGIS2dj41
Dr. Duru
17 Sep 14 05:27:21
%stocks>40DMA=39% It Just Took One Man to Light Up the Market Tinder!? http://t.co/ZdKGHGiUWo $SPY $QQQ $AAPL $UVXY $EEM #T2108
Jamie Lissette
17 Sep 14 05:15:37
watching $EEM 43.68 level very carefully ...thats the 100 day. seeing rsx, greek cyprus type indexes failing... http://t.co/3ea9X9Y9CB
Ronnie DiMaio
17 Sep 14 05:15:22
$EEM trades in a channel anyway. It goes from 45 to 35 and vice versa. It's near 45 now so it's still a good time to get in the short trade.
Ronnie DiMaio
17 Sep 14 05:13:35
Fund managers are taking money out of emerging market investments due to higher USA interest rates. This means $EEM is a good short.
17 Sep 14 05:11:57
$BAC Open Click Here: http://t.co/lF41udmJjS Also See: $COO $EEM $SPXS $SMH ~
17 Sep 14 04:56:12
Options high volume: $AAPL Calls, $BAC Calls, $EEM Calls, $PBR Calls, $SPY Puts, and $VIX Calls. I'm in $F $17 C 9/20 & $AA $17 C 10/18.
Large Void Bot
17 Sep 14 04:01:44
Popular: $LEN, $RAX, $MSFT, $FDX, $ACN, $RIO, $SUNE, $XLP, $EEM, $EWZ, $OIL
Investors Hangout
17 Sep 14 03:13:14
$ACHN News Click Here: http://t.co/Cainl6QtGk Also See: $RIG $MNVN $EEM $EPGL ~
Livermore's Lounge
17 Sep 14 03:11:56
“@RectitudeMarket: Pre-US Open Emerging Markets: UP ... Best: Indonesia IDX +1.12% Worst: Russia MICEX -2.08% http://t.co/VaFFQDyy1X” $EEM
17 Sep 14 03:01:55
$AA Quotes Click Here: http://t.co/WQesBZAJ9I Also See: $TNA $TNA $FNMA $EEM ~
Langan Stocks
17 Sep 14 02:20:31
$TRTC EOD Data Click Here: http://t.co/j6AsIv066J Also See: $EA $EEM $SCTY $HFCO ~
17 Sep 14 02:19:44
$RSII Yield Click Here: http://t.co/QjX5g7E6wg Also See: $AMZN $QIHU $MPC $EEM ~
17 Sep 14 01:25:00
Emrg Mkts Index MSCI Ishares (EEM) 44.14 $EEM Look for Shares of iShares MSCI Emerging Markets Index Fund/Unit http://t.co/uGgfmc3qXL
Dr. Duru
17 Sep 14 00:42:10
T2108 Update – It Just Took One Man To Light Up The Market Tinder?! $AAPL $EEM $UVXY $SPY $FXA http://t.co/GJNd7NcFxl
17 Sep 14 00:42:08
T2108 Update – It Just Took One Man To Light Up The Market Tinder?! $AAPL $EEM $UVXY $SPY $FXA http://t.co/3mGIS2dj41
Rosner Stocks
17 Sep 14 00:41:36
$MLHC Change Click Here: http://t.co/CnwtLPdVfp Also See: $EEM $GRCU $MNVN $NFLX ~
Investors Hangout
17 Sep 14 00:35:54
$MLHC Summary Click Here: http://t.co/tIVN42OyBx Also See: $TASR $EEM $MLHC $HFCO ~
Matt K
17 Sep 14 00:35:00
RT @DrDuru: %stocks>40DMA=39%. It Just Took One Man to Light Up the Market Tinder?! http://t.co/49tD3krYsU $SPY #T2108 $QQQ $AAPL $UVXY $EEM
17 Sep 14 00:33:57
$MLCG Bid Click Here: http://t.co/03UsEgfZEE Also See: $ERX $EEM $TASR $XNET ~
Investors Hangout
16 Sep 14 23:58:35
$MHYS Filings Click Here: http://t.co/X7sVkOLjCx Also See: $GLD $EEM $SGLB $MPC ~
16 Sep 14 23:31:43
$IFON Ask Size Click Here: http://t.co/fkhe1R4OK2 Also See: $ERBB $HHSE $EEM $DIGX ~
Dr. Duru
16 Sep 14 23:11:05
%stocks>40DMA=39%. It Just Took One Man to Light Up the Market Tinder?! http://t.co/49tD3krYsU $SPY #T2108 $QQQ $AAPL $UVXY $EEM
Eunice Thompson
16 Sep 14 20:10:40
$PBR, $MU, $YHOO, $SLV my potential long. $PEP, $IBM, $GME and $EEM may have an upward continuation tomorrow. will see!
16 Sep 14 18:41:00
http://t.co/hjgLwIcNgz Stock_Tracker: $EEM Company News Why investors will find Ukraine: Sto http://t.co/g3oFA6VHqg http://t.co/hjgLwIcNgz
16 Sep 14 17:57:43
Yahh Osama | Dell Huncho | $eem - Bar4Bar by Brickyard Shane 1 on #SoundCloud #@Yahh51 https://t.co/6edBHxznow
Mexico Bursatil
16 Sep 14 17:53:52
Atención: El día de hoy $EEM subió 1.31% y $EWW avanzó 0.83%.
16 Sep 14 16:48:25
EEM 3.50 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 09/16/2014 18:48:29 EEM Stock http://t.co/SUM5upimcf
16 Sep 14 16:45:09
Emrg Mkts Index MSCI Ishares (EEM) 44.14 $EEM Look for Shares of iShares MSCI Emerging Markets Index Fund/Unit http://t.co/qEE0mIok2A
Top ETF Funds
16 Sep 14 15:57:47
Turkey's Inflation: Most Serious Overshoot Since 2006.. http://t.co/aBzoiqtVz1 $EEM #ETF #ETFs #Stocks
Top ETF Funds
16 Sep 14 15:57:31
Today's Market Thorns, Roses, and All Time Highs..... http://t.co/p2N1AvNogM $EEM #ETF #ETFs #Stocks
Jeff Quiggle
16 Sep 14 15:57:04
Shan Shan Xie
16 Sep 14 15:05:30
RT @361Capital: Roses in the Market Today: $INDU $XLV $XLP $EEM $EWZ $PBR $USO $HUM $GRT $X $MU $GILD http://t.co/RYzocycBqj
16 Sep 14 15:00:05
Today's Most Active #Options http://t.co/SPLGsxAYkE $SPY $VIX $AAPL $SPX $EEM
Will Hassell
16 Sep 14 14:27:10
Had an up day of +.338% or +$48.34, worst performer was $HDGE -.43%, best was $EEM +1.33% a close second was $XLU +1.27% #performance
361 Capital
16 Sep 14 14:14:59
Roses in the Market Today: $INDU $XLV $XLP $EEM $EWZ $PBR $USO $HUM $GRT $X $MU $GILD http://t.co/RYzocycBqj
Dimitra DeFotis
16 Sep 14 13:51:30
Turkey’s Inflation: Most Serious Overshoot Since 2006 http://t.co/YYXSjgDAL3 via @barronsonline $TUR $EEM
Greg Harmon, CMT
16 Sep 14 13:33:01
$EEM reversal confirms higher low, 45/48 resistance and support 44/43/42.54 http://t.co/I8RiHt0YTm
Top ETF Funds
16 Sep 14 13:18:20
Will Emerging Markets Sell Off After Fed Pronouncement?.. http://t.co/S6EydgDQ1J $EEM #ETF #ETFs #Stocks
Top ETF Funds
16 Sep 14 13:18:03
'Death Cross' looms? Russell 2000 a concern:Cashin.. http://t.co/ZK9hIZupA0 $EEM #ETF #ETFs #Stocks
16 Sep 14 13:04:54
I moved to all cash at the close. All in all a decent day. $EDC $EEM
16 Sep 14 12:57:25
RT @stt2318: $EEM getting that bounce we talked about in the newsletter last night... http://t.co/Xvm1a9mLgp
16 Sep 14 12:56:59
Why Alibaba is ineligible for inclusion into some of the largest ETFs in the world http://t.co/Ik7k835eQz #AlibabaIPO $EEM $VWO $QQQ
16 Sep 14 12:23:27
$EEM getting that bounce we talked about in the newsletter last night... http://t.co/Xvm1a9mLgp
16 Sep 14 11:27:34
BLOCK TRADE: $EEM 1,139,500 shares @ $44.40 [14:27:34]
16 Sep 14 11:25:37
BLOCK TRADE: $EEM 619,590 shares @ $44.39 [14:25:35]
Livermore's Lounge
16 Sep 14 11:12:37
16 Sep 14 11:03:57
2HR WARNING - $$$ REMAINS IN THE $MACRO $SMH $TQQQ $SPY $EEM $FXI $TBT $USO $JJC $GLL $VIX $UUP .. $SMH $SMH $SMH ... http://t.co/peMdwjigak
Keith Rosendahl
16 Sep 14 09:52:08
$EEM investors throwing caution to the wind. #POBC $FXI
By  +Follow December 19, 2013 1:28PM



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