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Turkey, China Stocks Drag Down Emerging Markets Again

By  +Follow December 19, 2013 1:28PM
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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for EEM
royfberger
25 Apr 15 21:31:06
Barcelona! Take me back! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/JUFJoVvAWo http://t.co/pLc28VuM4R
Bradley
25 Apr 15 20:55:06
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/1MTXg1HVYj
Polyticks
25 Apr 15 16:49:09
RT @ETFdb: Check out this week's ETF scorecard> http://t.co/KUoIY3zGws $SPY $QQQ $EEM $GLD $USO @sbojinov @fabiancapital @ETFGodfather @Chr…
TOKOSSSS
25 Apr 15 16:41:46
@CheWithBlingOn $eem$ like the thing to do lol i just saw the diffrent world ep where shaza zulu was hocking his relationship advice too lol
eDro
25 Apr 15 12:38:20
What $eem$ to be one of the mo$t attractive feature$ $omeone can have in today$ $ociety? I$ thi$ right?
Abraham Ben Yiju
25 Apr 15 12:10:40
$TUR $EEM $VWO 182,000 lose jobs within one month in #Turkey [Bearish] http://t.co/FpKfSIeokl
Abraham Ben Yiju
25 Apr 15 12:06:51
$EGPT $EEM $VWO $GAF Trader profile: Opportunity abounds in #Egypt and Nigeria [Bullish] http://t.co/9gtN0gT4DN
IH News Desk
25 Apr 15 10:24:36
$UVXY Last Price Updated Saturday, April 25, 2015 1:10:52 PM $CTIX $EEM $EWJ $AAPL http://t.co/cnHKjvMYno
Melissa Frakman
25 Apr 15 10:16:26
Chinese, Japanese, Korean banks increase lending exposure to Indian firms http://t.co/NQ8TIFeqfj $EEM @NextBankAsia @asiabankersclub
Abraham Ben Yiju
25 Apr 15 09:37:06
$TUR $EEM $VWO Turkish lira falls to record low on political jitters #turkey [Bearish] http://t.co/ue9w30XZxd
Bradley
25 Apr 15 09:08:06
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/AbnJJQ7VQY
Rosner Stocks
25 Apr 15 08:33:44
$FSLR Last Price Updated Saturday, April 25, 2015 10:59:25 AM $SWC $EEM $XLE $ARIA http://t.co/T5MYQsXhOh
Cutlass
25 Apr 15 07:53:32
RT @SwatOptions: $EEM big size position I open @swat_premium its MAY.15 CALL 44 at 0.23$ entries - on Friday went 0.6s #HOLDING http://t.co…
Cutlass
25 Apr 15 07:53:19
RT @SwatOptions: $EEM everyone @swat_premium knows I've been bullish on this ETF for some time and loaded on MAY CALLs 44 http://t.co/E7jvj…
Cutlass
25 Apr 15 07:53:03
RT @SwatOptions: $EEM flagged CALLs 41 at 0.43$ @swat_premium on MAR.20 from @OptionsFlux - went for $2.8++ printing $$$ http://t.co/dQK5b…
Top ETF Funds
25 Apr 15 07:53:02
Chart Patterns Everywhere: Bullish or Bearish For Stocks?.. http://t.co/PMWpc4ClO3 $EEM #ETF #ETFs #Stocks
PolgarStocks
25 Apr 15 07:35:08
$SPXL Stock Price Updated Saturday, April 25, 2015 10:07:05 AM $EEM $PG $DXPE $RHT http://t.co/kuSgw1KvVQ
Jablonski
25 Apr 15 06:53:40
RT @SwatOptions: $EEM flagged CALLs 41 at 0.43$ @swat_premium on MAR.20 from @OptionsFlux - went for $2.8++ printing $$$ http://t.co/dQK5b…
Tiger Shark
25 Apr 15 06:53:31
RT @SwatOptions: $EEM everyone @swat_premium knows I've been bullish on this ETF for some time and loaded on MAY CALLs 44 http://t.co/E7jvj…
LVK
25 Apr 15 06:52:34
RT @SwatOptions: $EEM big size position I open @swat_premium its MAY.15 CALL 44 at 0.23$ entries - on Friday went 0.6s #HOLDING http://t.co…
Options Network
25 Apr 15 06:27:46
$EEM big size position I open @swat_premium its MAY.15 CALL 44 at 0.23$ entries - on Friday went 0.6s #HOLDING http://t.co/SiA3TjK7xg
Options Network
25 Apr 15 06:25:15
$EEM everyone @swat_premium knows I've been bullish on this ETF for some time and loaded on MAY CALLs 44 http://t.co/E7jvjeS7cl
Options Network
25 Apr 15 06:23:29
$EEM flagged CALLs 41 at 0.43$ @swat_premium on MAR.20 from @OptionsFlux - went for $2.8++ printing $$$ http://t.co/dQK5bbTPlj
royfberger
25 Apr 15 06:11:11
Barcelona! Take me back! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/JUFJoVvAWo http://t.co/MvTGrVa58f
Edward Gofsky
25 Apr 15 06:02:14
RT @muathe: [VIDEO] Wkend World Mrkt Analysis 04/25/2015 $FXI $EWZ $EEM $EWJ $EFA $RSX $EWT $EWH $EZU $VEA $HEDJ $EWG $VGK $EZA https://t.c…
PolgarStocks
25 Apr 15 05:33:09
$IWM Recent News Updated Saturday, April 25, 2015 08:07:04 AM $FDN $CLF $CELG $EEM http://t.co/1NiP5PovET
moderneconomist.com
25 Apr 15 05:06:27
RT @harmongreg: What to expect from the stock market this week - Dragonfly Capital $SPY $IWM $QQQ $GLD $USO $TLT $EEM and more http://t.co/…
Greg Harmon, CMT
25 Apr 15 05:02:09
What to expect from the stock market this week - Dragonfly Capital $SPY $IWM $QQQ $GLD $USO $TLT $EEM and more http://t.co/NX9iUCTfMY
XATS-UK
25 Apr 15 04:03:52
Profit-taking to limit further gains in the #EmergingMarkets #ETF $EEM. http://t.co/GFP6AeTS1Z
PolgarStocks
25 Apr 15 03:31:40
$UPS News Updated Saturday, April 25, 2015 06:07:03 AM $IJR $IJR $EEM $ABX http://t.co/BIOyxzzUjQ
PolgarStocks
25 Apr 15 01:29:08
$BIDU Investor Opinions Updated $PMCB $CTCM $EEM $EEM http://t.co/SXoKt3YN1v
Rosner Stocks
25 Apr 15 01:27:34
$GLD Stock Message Board Updated $NWGC $EEM $XIV $IJH http://t.co/5rc8nqOvpa
James DiPlata
25 Apr 15 00:55:41
RT @IHNewsDesk: $BABA Stock Price Updated $QLD $SQQQ $DIS $EEM http://t.co/q3OBH3jn5z
IH News Desk
25 Apr 15 00:48:16
$BABA Stock Price Updated $QLD $SQQQ $DIS $EEM http://t.co/q3OBH3jn5z
Edward Quince
25 Apr 15 00:40:40
This will hurt even more to $EPI $EEM https://t.co/c3yZx2oM3O
Langan Stocks
25 Apr 15 00:27:16
$EC Opinions Updated $EWH $EEM $UPS $XOM http://t.co/oPB3K5pKIr
Rosner Stocks
25 Apr 15 00:27:13
$FXI Short Sales Updated $EEM $JNJ $GS $LNKD http://t.co/95IBuF6Xqs
ViLα Fundão $$
24 Apr 15 23:15:32
$eem pre$$a noi$ $e adianta! 💰
Top ETF Funds
24 Apr 15 22:55:47
Will Netflix Sustain Its Growth in the Future?.. http://t.co/ujKsLjOJg4 $EEM #ETF #ETFs #Stocks
TalkMarkets
24 Apr 15 22:39:01
Emerging Markets Are Hot $SCHE $VWO $EEM $IEMG $EDC http://t.co/fEb25JHcmc
PolgarStocks
24 Apr 15 22:25:37
$EEM Reviews Updated Saturday, April 25, 2015 01:07:03 AM $CSCO $V $FXE $EC http://t.co/XVKyi6bb4n
Langan Stocks
24 Apr 15 22:25:07
$JNJ Stock Message Board Updated Saturday, April 25, 2015 01:03:13 AM $EWS $XLV $TBT $EEM http://t.co/J5UvKlDOr7
Rosner Stocks
24 Apr 15 22:25:07
$BP News Updated Friday, April 24, 2015 12:59:23 PM $TNA $FXI $EEM $MCD http://t.co/5NefDn7z6O
Christian Magoon
24 Apr 15 21:29:03
RT @ETFdb: Check out this week's ETF scorecard> http://t.co/KUoIY3zGws $SPY $QQQ $EEM $GLD $USO @sbojinov @fabiancapital @ETFGodfather @Chr…
Bradley
24 Apr 15 20:50:10
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/TfIK6wHs4L
Rosner Stocks
24 Apr 15 20:24:06
$INCC Stock Forum Updated Friday, April 24, 2015 10:59:22 PM $SWKS $BABA $CAT $EEM http://t.co/3OZ0VC5k80
PolgarStocks
24 Apr 15 17:21:35
$NEM Stock Price Updated Friday, April 24, 2015 8:07:01 PM $XLY $EEM $IWM $XBI http://t.co/9LwFacqI98
Jeff Quiggle
24 Apr 15 17:03:46
$MACRO > $FXI $EEM $USO $JNK $QQQ $SPY $IWM $FEZ $GLD $IYT $UUP $TLT Yesterday > $FXI $EEM $JNK $USO $IWM $QQQ $SPY $FEZ $UUP $IYT $GLD $TLT
Chart Lab Pro
24 Apr 15 16:49:39
Follow Up from Tuesday 21st on $EEM, our rating value still gaining Stregth http://t.co/dctjMgZEP5
UPBOptionMil
24 Apr 15 16:40:07
RT @etfdigest: $SPY $SPX $QQQ $RUT $NDX $RSX $FXI $EWS $EEM ETF Digest Dave's Daily: Back To The Future For Nasdaq http://…
				
				
By  +Follow December 19, 2013 1:28PM
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