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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.


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Results for EEM
PennyStock Zone
27 Nov 14 12:43:04
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
$HUG $AVAGE ❗️❗️❗️
27 Nov 14 09:40:22
RT @darealseem: Listen to $eem ft lil Rob - basic by $eemsWORLDTheMIXTAPE #np on #SoundCloud https://t.co/MMYJQBVFfr
Financial Iceberg
27 Nov 14 08:45:43
SP500 and Emerging Markets ( IVV - EEM ): Emerging Near Breaking Resistance Trendline ? $SPY, $SPX, $ES_F, $EEM http://t.co/ZmVCTQHE2h
$EEM
27 Nov 14 08:42:46
Listen to $eem ft lil Rob - basic by $eemsWORLDTheMIXTAPE #np on #SoundCloud https://t.co/MMYJQBVFfr
Financial Iceberg
27 Nov 14 06:16:36
SP500 and Emerging Markets ( IVV - EEM ): Emerging Near Breaking Resistance Trendline ? $SPY, $SPX, $ES_F, $EEM http://t.co/WWvtWNOUhw
Mike Zaccardi, CMT
27 Nov 14 05:35:52
YTD TR: $SPY +14.0% $IWM +3.6% $EFA -1.5% $EEM +2.1% $AGG +5.5% $TLT +22.3% $HYG +3.7%
lookn4wins
26 Nov 14 21:29:07
EEM +2.04% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/erHsJenyJu
chartguy89
26 Nov 14 20:35:55
EEM +2.04% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 11/26/2014 22:35:56 EEM Sto http://t.co/4oqBHC8Lq2
OTPicks.com
26 Nov 14 19:50:22
http://t.co/NYsxQOU64w lookn4wins: EEM +2.04% Stock Charts $EEM Electricite et Eaux: http://t.co/H9S4xDGHTB http://t.co/NYsxQOU64w
Eternity101
26 Nov 14 19:47:05
Why the Fed’s bond buying program has led to pricey assets http://t.co/6DUfjDB90z $HYG $TLT $JNK $IEF $EEM
Ben Silverberg
26 Nov 14 19:34:29
Leading market sectors higher Wednesday included: $IYR $SMH $XLU $QQQ $EEM $KOL $IBB $XLV $TLT
OTPicks.com
26 Nov 14 17:45:51
http://t.co/NYsxQOU64w Emylers: $EEM Up to date company activities and other: Emylers http://t.co/t4Y9okbjD7 http://t.co/NYsxQOU64w
Jeff Quiggle
26 Nov 14 17:43:29
$MACRO > $SPY $QQQ $IWM $FEZ $TLT $FXI $EEM $GLD $JNK $USO Yesterday > $SPY $QQQ $IWM $FEZ $TLT $FXI $EEM $GLD $JNK $USO
ShortStockVolume.com
26 Nov 14 14:32:29
Top Shorted Stocks 11/26/14... 20. $TLM 66.58% 21. $GDXJ 66.37% 22. $SO 66.22% 23. $XLK 65.27% 24. $XLU 65.19% 25. $EEM 65.14%
ShortStockVolume.com
26 Nov 14 14:32:27
Top Shorted Stocks 11/26/14... 25. $EEM 65.14% http://t.co/z36kHMNciS
Market Trader Daily
26 Nov 14 13:01:35
Nov 26-2014 Wed Mkt Close $DJI 17828.46 +13.39 $SPX 2072.80 +5.77 $NAS 4787.31 +29.06 $FXI 40.93 $SOX 683.48 $CHN 22.0 $EEM 42.35 $VIX 12.10
Cirrus Radiatus
26 Nov 14 12:11:57
Check out my Two-Dimensional #ETF Trendscreener (1 Pic.) $SPY $EEM $GDX $EWZ $XLE $USO $UNG $IYR $QQQ $IWM $XLU http://t.co/TMPcfB0Kbz
Alvaro
26 Nov 14 12:06:43
$EEM + 1,21% $EWW negative
Julian
26 Nov 14 11:04:56
es la psicologia lo que hay que tradear en $EEM ... hay acciones como $ITUB $BBD que recuperaron el 60% de todo lo que cayo en septiembre
Investors Hangout
26 Nov 14 11:04:28
Emylers: $EEM Up to date company activities and other http://t.co/nB74YUhdsi
Investors Hangout
26 Nov 14 11:04:15
Emylers: $EEM Up to date company activities and other http://t.co/I3qdXPetvS
Emylers
26 Nov 14 10:55:04
$EEM Up to date company activities and other important information about $EEM http://t.co/x9aKfyYWII
iHangout
26 Nov 14 10:37:18
lookn4wins: ALERTS, HOT STOCKS & CHARTS: EEM +2.04% Stock Charts $EEM Electricite et Eaux http://t.co/p7FZIvCdbI
lookn4wins
26 Nov 14 10:35:35
EEM +2.04% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/GrVERSiDrY
PennyStock Zone
26 Nov 14 10:19:14
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
Cutlass
26 Nov 14 09:51:52
RT @BlockTradeAlert: BLOCK TRADE: $EEM 500,000 shares @ $42.32 [12:49:30]
BlockTradeAlert
26 Nov 14 09:49:31
BLOCK TRADE: $EEM 500,000 shares @ $42.32 [12:49:30]
Jawad Mian
26 Nov 14 09:07:04
Must Read on EM Equities http://t.co/RV3tfzc9ZO via @EMostaque $EEM
lookn4wins
26 Nov 14 09:05:18
$NUGT 200 Simple Moving Average $NUGT Most recent stock chart and technical analysis. $X $PLUG $EEM $BBRY $NHM http://t.co/XjXAuAVxkn
chartguy89
26 Nov 14 08:17:25
NLNK Stock Chart $NLNK $S $EEM $BB.TO http://t.co/3UX1jBvmZ1 http://t.co/GNxGPA6naf
lookn4wins
26 Nov 14 07:51:04
$CLF TA $CLF Most recent stock chart and technical analysis. $ANV $EFA $MMM $EEM $CREE $ONCS http://stockchart http://t.co/TiETjRPd1Z
Two Knights Trading
26 Nov 14 07:21:28
There is some serious action today in emerging market equity and debt options market. Investors betting on a rotation in 2015? $EEM
danrocks
26 Nov 14 07:15:10
$SUPN On Radar $KGC $EDZ $SLW $PBR $EEM http://t.co/uUM7knfC3G
Investors Hangout
26 Nov 14 07:11:48
Stock_Tracker: $EEM Company News Strong bull trend reaches http://t.co/xroWtUkQfP
Investors Hangout
26 Nov 14 07:11:47
Stock_Tracker: $EEM Company News Strong bull trend reaches http://t.co/da5H009W5v
Al Sabogal
26 Nov 14 07:02:01
$EEM strong!
Cirrus Radiatus
26 Nov 14 06:12:38
Check out my Two-Dimensional #ETF Trendscreener (1 Pic.) $SPY $GDX $EEM $IWM $USO $XLF $XLE $EWZ $QQQ $GDXJ $XLU http://t.co/686CovcJln
Seeking Alpha
26 Nov 14 05:47:32
The Best Emerging Market Dividend ETF http://t.co/QT7dAi4u6g $DGRE $EEM $DGS $EMDG $DVYE $EDIV $EMHD $HILO $DEM
AdosenTrading
26 Nov 14 05:46:22
RT @stt2318: Opened up http://t.co/51LoB1Kkcn for everyone one more day! My daily setups catalogued by strategy.. Check it out! $SPY $QQQ …
Furlicity  #IVU
26 Nov 14 04:59:42
RT @stt2318: Opened up http://t.co/51LoB1Kkcn for everyone one more day! My daily setups catalogued by strategy.. Check it out! $SPY $QQQ …
stt2318
26 Nov 14 04:52:20
Opened up http://t.co/51LoB1Kkcn for everyone one more day! My daily setups catalogued by strategy.. Check it out! $SPY $QQQ $IWM $EEM
Investors Hangout
25 Nov 14 22:29:11
lookn4wins: EEM -0.68% Stock Charts $EEM Electricite et Eaux http://t.co/KLG9rSZ2i3
Investors Hangout
25 Nov 14 22:29:11
lookn4wins: EEM -0.68% Stock Charts $EEM Electricite et Eaux http://t.co/nxfk2EECpi
lookn4wins
25 Nov 14 22:27:04
EEM -0.68% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/RWarWIZw8G
Jeff Quiggle
25 Nov 14 22:20:39
$MACRO > $SPY $QQQ $IWM $FEZ $TLT $FXI $EEM $GLD $JNK $USO Yesterday > $SPY $QQQ $IWM $FEZ $FXI $TLT $EEM $GLD $JNK $USO
Ben Silverberg
25 Nov 14 18:58:33
Leading market sectors lower Tuesday included: $XLE $TAN $ITB $XLB $EEM $FXI $RSX $MOO $KOL $USO.
Van Castle
25 Nov 14 17:19:18
RT @harmongreg: $EEM rejection confirmed lower, 41/40.4/39.25 support, resistance 42.54/43/44 http://t.co/PSzahbeTWY
Me_Sean
25 Nov 14 16:38:02
Rule #2 Never force a trade just to get some action. Cash doesn't lose you money. $spy $dia $qqq $iwm $tlt $tbt $eem $EWW
Me_Sean
25 Nov 14 16:32:08
Rule #1 It is never a bad time to hedge.$spy $dia $qqq $iwm $tlt $tbt $eem $EWW
PennyStock Zone
25 Nov 14 16:26:23
http://t.co/37mHH9cdhB <-- 2 stocks trading books: 1 entertaining and 1 educational! Both awesome! $TE $EEM $BIND $DENN $KR
				
				
By  +Follow December 19, 2013 1:28PM
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