logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Turkey, China Stocks Drag Down Emerging Markets Again

By  +Follow December 19, 2013 1:28PM
Share:
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.”

Results for EEM
mikecronan
24 Apr 14 07:43:51
RT @ETFcom: http://t.co/vUKJ2mPJx9 White Paper: 2014 Definitive Guide To China ETFs #china $ASHR $EEM $VWO http://t.co/DarvC9t60y
Karen Damato
24 Apr 14 07:40:10
RT @ETFcom: http://t.co/vUKJ2mPJx9 White Paper: 2014 Definitive Guide To China ETFs #china $ASHR $EEM $VWO http://t.co/DarvC9t60y
iHangout
24 Apr 14 07:39:44
DennyT: Xtremepicks Alerts: ELTP Recent News $ELTP $MRK $WFT $EEM $IBM Buy or http://t.co/08Uvq3dU8N
iHangout
24 Apr 14 07:39:20
Stock_Tracker: HDOG HUB: $EEM Recent News Asia Stocks recap: Mixed moves http://t.co/0I6GnSz9PA
DennyT
24 Apr 14 07:36:00
ELTP Recent News $ELTP $MRK $WFT $EEM $IBM Buy or Sell Opinion,Volume,Current Price,Headlines,Hitting Buzz Sto http://t.co/6SYvHYl8nh
Stock_Tracker
24 Apr 14 07:35:32
$EEM Recent News Asia Stocks recap: Mixed moves for market 2:24 a.m. Today - http://t.co/pOifVlFFyl New ETF's c http://t.co/frdfbEfJds
Issaquah Capital
24 Apr 14 07:31:40
$EEM Code Red once again.. hmmm
BlockTradeAlert
24 Apr 14 07:20:12
BLOCK TRADE: $EEM 960,000 shares @ $41.15 [10:20:11]
leahanne
24 Apr 14 07:15:48
$SLV Silver Trust Ishares (SLV) 18.99 +0.30 (+1.61%) $AVOP $IWM $EEM http://t.co/5FgXyBRYgq
Pike Gall
24 Apr 14 07:00:34
$EEM Investors Cool on A-Shar http://t.co/aTn8ILxYVh
ValueWalk.com
24 Apr 14 06:41:51
Hedge Funds Witness Muted Start To 2014: Preqin http://t.co/CZEtOMTMZj $MACRO $EEM http://t.co/vVzVBJU1ME
Kym L
24 Apr 14 06:37:36
$EEM heavy, $TLT opens lower but it bought
ETF.com
24 Apr 14 06:34:04
http://t.co/vUKJ2mPJx9 White Paper: 2014 Definitive Guide To China ETFs #china $ASHR $EEM $VWO http://t.co/DarvC9t60y
Tim Brennan
24 Apr 14 06:24:41
Expected Ranges for 4/24/2014 $SPY $QQQ $AAPL $MSFT $AMZN $GS $EEM $FB $TSLA http://t.co/MHc0sz8yyd
Alessandro
24 Apr 14 05:31:46
RT @ETFtrends: Crazy for Cotton, $AAPL Dividend Good News for $TDIV, A-Shares to $EEM? More Energy $BAL $ASHR $SPY $CYB $IXC $IPW http://t.…
ETF Trends
24 Apr 14 05:31:02
Crazy for Cotton, $AAPL Dividend Good News for $TDIV, A-Shares to $EEM? More Energy $BAL $ASHR $SPY $CYB $IXC $IPW http://t.co/vosZrXFGR6
Stock_Tracker
24 Apr 14 03:16:18
Emrg Mkts Index MSCI Ishares (EEM) 41.34 $EEM Knowing ETF Firms' Traits Can Help You Sort Field at Investor's http://t.co/tO4JdIM0lJ
Lutz Braune
24 Apr 14 02:46:05
$EEM Asia Stocks recap: Mixed moves for market http://t.co/z5v0J5jCCm
Lutz Braune
24 Apr 14 01:42:13
$EEM Midday index, ETF option volumes http://t.co/agsYBO4q2D
chartguy89
24 Apr 14 00:47:29
EEM 4.69 Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 04/24/2014 02:47:28 EEM Stock http://t.co/Vw1wv7DD0a
Lutz Braune
23 Apr 14 21:34:33
$EEM Asia Stocks live blog: Mixed moves for market http://t.co/z5v0J5jCCm
Lutz Braune
23 Apr 14 21:24:04
$EEM Why it may be time to fold on casinos http://t.co/1v4r6era96
Stanley Blanchard
23 Apr 14 19:50:29
RT @KimbleCharting: Breakdown and rollover starting here? $EEM This much stronger than $SPY YTD $FXI $EWZ $STUDY http://t.co/utVWWP2s56
Lutz Braune
23 Apr 14 19:09:19
$EEM Is The Global Growth Story In Jeopardy? http://t.co/AKr2WqDodQ
Lutz Braune
23 Apr 14 18:25:12
$EEM Das: No Hard Landing For China, But Globalization Has Peaked http://t.co/jvy4tnZYr5
Lutz Braune
23 Apr 14 17:28:34
$EEM Asia Stocks live blog: Mixed omens for market http://t.co/z5v0J5jCCm
Jeff Quiggle
23 Apr 14 16:04:53
$MACRO > $TLT $EEM $USO $FEZ $JNK $FXI $SPY $QQQ $IWM $GLD Yesterday > $EEM $USO $TLT $FEZ $FXI $JNK $SPY $GLD $IWM $QQQ
Lutz Braune
23 Apr 14 16:00:36
$EEM New ETF's claim: Holding blue chips, but riding emerging-markets growth http://t.co/tUCI1mzG84
Joe Attrux
23 Apr 14 15:55:28
RT @SeekingAlpha: Das: No Hard Landing For China, But Globalization Has Peaked http://t.co/E7qvsAWOYD $FXI $EEM $VWO $SPY $IVV
Seeking Alpha
23 Apr 14 15:48:16
Das: No Hard Landing For China, But Globalization Has Peaked http://t.co/E7qvsAWOYD $FXI $EEM $VWO $SPY $IVV
Lutz Braune
23 Apr 14 15:44:04
$EEM Sanibel’s Dorsey on Emerging-Markets ETFs (Audio) http://t.co/p0BwnzQHOj
Seeking Alpha
23 Apr 14 15:00:04
Is The Global Growth Story In Jeopardy? http://t.co/SoweHhut0k $EEM $VWO $EFA $EDC $VEA $EDZ $SCHE $IEMG $EEV $PIE $ADRE $EUM $IEFA $PIZ
Robust capital
23 Apr 14 14:15:10
Where are we? $eem $spy http://t.co/D8ADLEFest
Seeking Alpha
23 Apr 14 14:00:04
Emerging Markets: Investing Where Others Fear To Tread http://t.co/P9YMQmd5Qq $EGPT $EIDO $EPHE $THD $TUR $INP $EWZ $EEM $VWO
Lutz Braune
23 Apr 14 13:18:09
$EEM Why equity ETFs like EEM showed mixed performance last week http://t.co/UuaeuutqM3
JPU
23 Apr 14 13:13:46
RT @SeekingAlpha: Emerging Markets: Investing Where Others Fear To Tread http://t.co/4zy4mtCxC7 $EGPT $EIDO $EPHE $THD $TUR $INP $EWZ $EEM …
Seeking Alpha
23 Apr 14 13:13:06
Emerging Markets: Investing Where Others Fear To Tread http://t.co/4zy4mtCxC7 $EGPT $EIDO $EPHE $THD $TUR $INP $EWZ $EEM $VWO
InvestorPlace
23 Apr 14 12:58:38
4 Stocks to Sell Into Pressure (And 1 to Buy) $PHM $EEM $LULU $JPM $NEM http://t.co/T3knukZhBN
BlockTradeAlert
23 Apr 14 12:05:37
BLOCK TRADE: $EEM 1,200,000 shares @ $41.32 [15:05:36]
Jacob Wolinsky
23 Apr 14 11:20:24
RT @Equitykingkong: Fund Managers Have ‘Tapered’ Their Extreme EM Underweight Sentiment http://t.co/T4mG5QPFaj … $EEM $EWU $MACRO http://t.…
BrutusMaximus
23 Apr 14 11:20:06
Fund Managers Have ‘Tapered’ Their Extreme EM Underweight Sentiment http://t.co/T4mG5QPFaj … $EEM $EWU $MACRO http://t.co/gy7B9rFVw7
Carlo C Buchal
23 Apr 14 11:14:18
RT @valuewalk: Fund Managers Have ‘Tapered’ Their Extreme EM Underweight Sentiment http://t.co/tPapGocqHX $EEM $EWU $MACRO http://t.co/a2SX…
ValueWalk.com
23 Apr 14 11:12:12
Fund Managers Have ‘Tapered’ Their Extreme EM Underweight Sentiment http://t.co/tPapGocqHX $EEM $EWU $MACRO http://t.co/a2SXlnRsRu
Dennis Hudachek
23 Apr 14 10:21:23
Definitive Guide to China ETFs: 2014 Edition http://t.co/FgJO8DLStN #RQFII $FXI $MCHI $GXC $PGJ $ASHR $EEM $VWO $GMM
jim50
23 Apr 14 09:39:23
$EEM Open Date=Apr-22-2014 Open=41.81 High=41.86 Low=41.62 Close=41.64 Volume=43060000 http://t.co/PqjKyc8Mx2
Market Int Center
23 Apr 14 09:15:00
Potential iShares MSCI Emerging Markets Index $EEM Trade Has 3.19% Downside Protection ( http://t.co/DfRsX0KjTv )
lookn4wins
23 Apr 14 08:59:40
$SPLI Daily Chart $SPLI Most recent stock chart and technical analysis. $ILNS $DIA $ILNS $FCX $EEM $BIIB http: http://t.co/vAEqjZRwu3
Julian Park
23 Apr 14 08:52:45
RT @KimbleCharting: Breakdown and rollover starting here? $EEM This much stronger than $SPY YTD $FXI $EWZ $STUDY http://t.co/utVWWP2s56
jackie s
23 Apr 14 08:47:57
Sectors moving lower: $EEM emerging markets $XLK tech & $XLV healthcare
AMDcapital4
23 Apr 14 08:44:51
RT @seeitmarket: "Market Masters: Managing Risk With Trend Following" http://t.co/X0q3U2GDTn by @FabianCapital $SPY $EEM $VIX $STUDY
				
				
By  +Follow December 19, 2013 1:28PM
Share:

Editor's Picks

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.