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.”

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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for EEM
Bradley
27 Feb 15 08:39:14
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/tXEd3V6hOQ
PolgarStocks
27 Feb 15 08:37:18
$VXX Stock Forum Updated Friday, February 27, 2015 11:07:25 AM $AMZN $EEM $IEVM $MCD http://t.co/nbiye9rAIQ
PolgarStocks
27 Feb 15 08:37:07
$PG Filings Updated Friday, February 27, 2015 11:07:25 AM $UCO $WFC $EEM $SPXL http://t.co/6Qz5KEaLqW
John Smith
27 Feb 15 08:30:43
$EEM 2-week chart https://t.co/wTKxI83hPS
constantinos
27 Feb 15 08:17:03
RT @mark_dow: @Ch2Christo reflation sentiment. I'm no fundamental $EEM bull, but compare the charts
Mark Dow
27 Feb 15 08:14:24
@Ch2Christo reflation sentiment. I'm no fundamental $EEM bull, but compare the charts
Matt
27 Feb 15 08:14:01
RT @mark_dow: Remember 5yr breakeven chart? Watch $EEM http://t.co/jhglzj2tAD
Prometheus AM
27 Feb 15 08:13:07
RT @mark_dow: Remember 5yr breakeven chart? Watch $EEM http://t.co/jhglzj2tAD
STMatos
27 Feb 15 08:12:51
$VWO is ready to pop out. #ETF $EEM
Mark Dow
27 Feb 15 08:12:49
Remember 5yr breakeven chart? Watch $EEM http://t.co/jhglzj2tAD
BarrierCove
27 Feb 15 08:11:28
Emerging Markets are on a roll with $EDC and $EEM
IH News Desk
27 Feb 15 07:31:38
$DDD Stock Forum Updated Friday, February 27, 2015 10:11:26 AM $QIHU $INTC $EEM $MTL http://t.co/oSfnPH1Yfa
Emerging Money
27 Feb 15 07:26:21
Market Update – EEM Trend Line and SPX Channel Spread http://t.co/hUHxa748GY $EEM $UUP $SPX #emergingmarkets
Anthony Allyn
27 Feb 15 07:25:11
$EEM continues to break higher
TalkMarkets
27 Feb 15 07:04:11
February's Terminus: Market Update $USO $XME $EEM $IWM $IYT $TNX $FXE $SPX http://t.co/GGWr4qxeGA
PolgarStocks
27 Feb 15 06:34:59
$EEM Filings Updated Friday, February 27, 2015 09:07:24 AM $AAPL $JNK $XLE $IJJP http://t.co/yOzOAv9KTN
Langan Stocks
27 Feb 15 06:24:12
$EEM News Updated Friday, February 27, 2015 09:03:23 AM $T $MRK $XLE $BOX http://t.co/I9APScOAlD
ETF Investing
27 Feb 15 06:00:02
Volatile Emerging-Markets ETF Flows Mask Growing Allocations To The Developing World http://t.co/PO7kH91qGq $EEM $VWO $IEMG $FEO $ETF
Andres Rodriguez
27 Feb 15 05:15:11
$GLD gold vs $SPY SP5'00 vs $USO oil vs $EEM emergentes. http://t.co/0SwtoHdyHD
RocK8Doc
27 Feb 15 04:15:22
"@sks1586: 2/26/15 Today’s_most_active_options - $XOM, $MCD, $EWJ, $GLD, $GDX, $EEM, $UNG http://t.co/TXmLkgXFr6 …"
Top ETF Funds
27 Feb 15 03:52:59
Beijing Expected To Lower Growth, Inflation Targets Next Week.. http://t.co/cUn46Szgzk $EEM #ETF #ETFs #Stocks
SKS1586
27 Feb 15 03:24:29
2/26/15 Today’s_most_active_options - $XOM, $MCD, $EWJ, $GLD, $GDX, $EEM, $UNG http://t.co/EO0SzvOx9a
Market Parse
27 Feb 15 02:30:20
@ksenia23_1991 $EEM Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBCk4m
Market Parse
27 Feb 15 02:30:20
@microcapEDGE $EEM Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBCk4m
IH News Desk
27 Feb 15 02:23:26
$CSCO Recent News Updated Friday, February 27, 2015 05:11:30 AM $EEM $T $BOX $DNKN http://t.co/LHhXHXp2JH
Langan Stocks
27 Feb 15 01:16:15
$NFLX Investor Opinions Updated Friday, February 27, 2015 04:03:28 AM $ARIA $MON $EEM $UGAZ http://t.co/vQwbGDwUOL
Market Parse
27 Feb 15 00:30:26
@Callum_Thomas $EEM Your tweet has been featured on Market Parse, for iPhone. http://t.co/YHInvBkJcO
PolgarStocks
27 Feb 15 00:24:44
$GDX Last Price Updated Friday, February 27, 2015 03:07:28 AM $UTX $EEM $HAL $FSLR http://t.co/bgnTvJV2TY
Rosner Stocks
27 Feb 15 00:21:53
$DIA News Updated Friday, February 27, 2015 02:59:27 AM $DUST $EEM $SUNE $YPF http://t.co/wDxFQKOy7v
Rosner Stocks
27 Feb 15 00:21:49
$EEM Last Price Updated Friday, February 27, 2015 02:59:27 AM $MA $ZIOP $CAPN $SLV http://t.co/rUGwvjWhE9
Derek Guo
26 Feb 15 23:45:26
RT @Callum_Thomas: Chart: @IIF Investors are still fairly downbeat on #EmergingMarkets - contrarian signal? $EEM $VWO http://t.co/9lU5hjtgDl
Stephen s
26 Feb 15 23:05:56
RT @IHNewsDesk: $AVGO Stock Forum Updated Friday, February 27, 2015 01:11:31 AM $RSP $CEHC $EEM $MYEC http://t.co/hmrFr0T53B
ProVesting
26 Feb 15 22:57:02
$FXI $MCHI $ASHR $EEM: Beijing Expected To Lower Growth, Inflation Targets Next Week: http://t.co/hI7uScaab6
Will Slaughter
26 Feb 15 22:47:13
RT @Callum_Thomas: Chart: @IIF Investors are still fairly downbeat on #EmergingMarkets - contrarian signal? $EEM $VWO http://t.co/9lU5hjtgDl
lookn4wins
26 Feb 15 22:21:24
EEM +0.34% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/zgp05OuXa0
VonGoethe Herbison
26 Feb 15 22:20:42
Largos $EDC con $EEM 42.75. Objetivo 42.98
IH News Desk
26 Feb 15 22:16:26
$XHB Percent Change Updated Friday, February 27, 2015 01:11:31 AM $VXX $YINN $BLTA $EEM http://t.co/IAwER1WWju
IH News Desk
26 Feb 15 22:16:20
$AVGO Stock Forum Updated Friday, February 27, 2015 01:11:31 AM $RSP $CEHC $EEM $MYEC http://t.co/hmrFr0T53B
Rosner Stocks
26 Feb 15 22:16:13
$SOXL Recent News Updated Friday, February 27, 2015 00:59:26 AM $FXI $EEM $QIHU $ODP http://t.co/SGOGSUCB1E
Langan Stocks
26 Feb 15 22:07:21
$MU News Updated Friday, February 27, 2015 00:03:27 AM $WMT $EEM $V $GE http://t.co/XBMuH5HVTM
Callum Thomas
26 Feb 15 21:42:18
Chart: @IIF Investors are still fairly downbeat on #EmergingMarkets - contrarian signal? $EEM $VWO http://t.co/9lU5hjtgDl
Jeff Quiggle
26 Feb 15 21:41:09
$MACRO > $QQQ $JNK $IWM $SPY $UUP $FEZ $FXI $EEM $USO $TLT $VXX $GLD Yesterday > $QQQ $JNK $SPY $IWM $FEZ $UUP $FXI $EEM $USO $TLT $VXX $GLD
Bradley
26 Feb 15 21:20:07
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/Y8JwmRvY6o
Energy Shots
26 Feb 15 20:35:50
RT @royfberger: Barcelona! Take me back! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/JUFJoVvAWo http://t.co/6nhDsjsIc9
CandidBanter
26 Feb 15 20:25:42
$EEM back on the buy/breakout radar-- watch list for now. #stocks #trading #money $SPY $EFA http://t.co/QhkUXcW8GF
XeL Arjona
26 Feb 15 19:28:31
Quite a "supportive" Week for Brazil... $EWZ $EEM http://t.co/dmfxTGMvUK
royfberger
26 Feb 15 19:01:14
Barcelona! Take me back! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/JUFJoVdZxO http://t.co/q2Tm7uf2gW
Market Parse
26 Feb 15 19:00:31
@portfolioecon Your tweet about $EEM had a sentiment of 5 and was featured on Market Parse. http://t.co/5WyUW68Klj
TalkMarkets
26 Feb 15 18:23:41
February's Terminus: Market Update $USO $XME $EEM $IWM $IYT $TNX $FXE $SPX http://t.co/GGWr4qxeGA
IH News Desk
26 Feb 15 18:12:37
$DDD Percent Change Updated Thursday, February 26, 2015 8:11:28 PM $EEM $AMZN $IBM $SDS http://t.co/tq0sADB6eg
				
				
By  +Follow December 19, 2013 1:28PM
Share:

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.