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 as a contributor and get eyeballs on your content FOR FREE!

Results for EEM
Jake Huska
28 Aug 14 03:48:33
ICYMI - NEW POST: Are Emerging Markets Set To Outperform U.S. Equities? $EEM $SPY http://t.co/cTmjTwToDE
Investors Hangout
28 Aug 14 03:43:33
$LNKD Chart http://t.co/zaTyAlnhNO Also See: $URA $IWM $AGG $EEM ~
Investors Hangout
28 Aug 14 03:36:21
$LNKD Ex-Div Date http://t.co/oVxQL8ceJx Also See: $SWKS $EEM $ATHM $SPLK ~
Market Monitor
28 Aug 14 03:16:31
$EEM: Another Index Provider Mulls Russia Adjustments http://t.co/BNlTviC4K3 http://t.co/vz2aG51hX2
Investors Hangout
28 Aug 14 03:03:26
Stock_Tracker: Emrg Mkts Index MSCI Ishares (EEM) 45.58 $EEM http://t.co/jITQfOUza9
Investors Hangout
28 Aug 14 03:03:08
Stock_Tracker: Emrg Mkts Index MSCI Ishares (EEM) 45.58 $EEM http://t.co/clH9pqoDng
iHangout
28 Aug 14 03:01:16
http://t.co/Vv1sYDyeQn Stock_Tracker: Stock DD Board: Emrg Mkts Index MSCI Ishares (EEM) 45.58 $EEM http://t.co/CYJ1A3ixDe
Mark-Jan Werner
28 Aug 14 01:28:37
$EEM (MSCI Emerging Markets) vs. $EWZ (Brazil) vs. $FXI (China) since March bottom http://t.co/Iq47wK5sEk
Investors Hangout
27 Aug 14 23:36:26
$GS Chart http://t.co/amF4DLyayC Also See: $XRT $EEM $KGC $GWPH ~
Rosner Stocks
27 Aug 14 21:15:49
$FLS 52Wk Low http://t.co/qrnWcOeej1 Also See: $THC $XHB $EEM $GRDO ~
Market News
27 Aug 14 20:16:11
$EEM: Another Index Provider Mulls Russia Adjustments http://t.co/GBePoCo9oe http://t.co/7x4dTvBzQ0
Joshua Schroeder
27 Aug 14 20:11:45
RT @hertcapital: $EEM Potential bullish outside month. Industrial metals complex with an uptrending 200-wk sma. $JJM http://t.co/RhV41mbfEn
Chasing Stars
27 Aug 14 20:05:17
$EEM Bid Size http://t.co/ZZDCylAbtZ Also See: $NFLX $INCC $WLT $EWY ~
Stock Forums
27 Aug 14 19:54:57
$EEM Dividend http://t.co/pvoQzPGKUK Also See: $XLB $DRYS $ALXN $FNMA ~
Investors Hangout
27 Aug 14 19:48:57
$EEM Yield http://t.co/QtnKFSnziq Also See: $SH $CSCO $APC $MYEC ~
Derek Hernquist
27 Aug 14 19:46:04
Nice work on liquidity "@ETFcom: ETF Tradability: A Primer | http://t.co/B7013QCqGF http://t.co/dFNUXaGKhe #ETFs” $eem
Rosner Stocks
27 Aug 14 19:45:43
$EEM Volume http://t.co/qtbGPKANj6 Also See: $FITX $TRUE $USO $OIH ~
Investors Hangout
27 Aug 14 19:43:09
$EEM Open http://t.co/zulXorMM7U Also See: $GPRO $KGC $XLK $ADRE ~
Sheldon McIntyre
27 Aug 14 19:40:34
$EEM Potential bullish outside month. Industrial metals complex with an uptrending 200-wk sma. $JJM http://t.co/RhV41mbfEn
Chasing Stars
27 Aug 14 18:58:48
$DIA Day Low http://t.co/NzuS1NahBs Also See: $FXI $BTU $EEM $KMI ~
Stock Forums
27 Aug 14 18:38:39
$DGLY Chart http://t.co/bmWnyqosfM Also See: $CSIQ $EEM $DBC $SLV ~
Market News Desk
27 Aug 14 18:16:11
$EEM: Emerging-Market ETF Declines as Fed Minutes Stoke Rate Concern http://t.co/ncyawrQDDr http://t.co/uni8b2dxrF
Rosner Stocks
27 Aug 14 18:09:43
$DBA Shares http://t.co/Agu4YQyOhz Also See: $PPH $EEM $V $DRYS ~
Investors Hangout
27 Aug 14 18:06:25
$DBA Stock Message Board http://t.co/tdv6i2NWGG Also See: $ACHN $UUP $EEM $YGE ~
David Blair
27 Aug 14 17:57:03
"@howardlindzon: I agree ...@ukarlewitz: $EEM closes at a new 3 yr high. Remember: technicals lead fundamentals http://t.co/m72243kuQa"
Jake Huska
27 Aug 14 17:50:38
NEW POST: Are Emerging Markets Set To Outperform U.S. Equities? $EEM $SPY http://t.co/iXkC907vjo
Rosner Stocks
27 Aug 14 17:35:24
$CTIC Current Price http://t.co/aRx51ZLjHX Also See: $EEM $TD.TO $CYCC $EFA ~
Investors Hangout
27 Aug 14 17:13:42
$CRM Ideas http://t.co/pYJhqu322s Also See: $GGAL $DIA $JAZZ $EEM ~
Minotaur
27 Aug 14 16:59:05
$EEM +0.51% vs. $SPY -0.04% #outperformance -> Momentum shifts from Europe to EM equities #stocks http://t.co/wmxUKp8qva
Investors Hangout
27 Aug 14 16:56:39
$CELG Bid Size http://t.co/QKrOpisuuY Also See: $IBM $EEM $SMH $TLT ~
Market Compass
27 Aug 14 16:16:12
$EEM: S&P 500's Race Above 2000 Lifts Cash for its ETFs http://t.co/P6IAmBXQP6 http://t.co/KQAO4NdqDC
Investors Hangout
27 Aug 14 16:12:57
$BKW Prev Close http://t.co/OEICoyr4zz Also See: $MCD $EEM $PPH $BIDU ~
Jeff Quiggle
27 Aug 14 16:05:51
$MACRO > $QQQ $SPY $FXI $EEM $TLT $JNK $IWM $FEZ $GLD $USO Yesterday > $QQQ $FXI $SPY $EEM $TLT $JNK $IWM $FEZ $GLD $USO
ETF Trends
27 Aug 14 16:00:09
An #EmergingMarkets ETF to the Core http://t.co/9EYFivUs0l #ETFs $IEMG $EEM $VWO
Tom Lydon
27 Aug 14 15:55:03
An #EmergingMarkets ETF to the Core http://t.co/ENpDKPpthl #ETFs $IEMG $EEM $VWO
Stock Forums
27 Aug 14 15:44:35
$BBY Ask Size http://t.co/XfdikvEbyQ Also See: $GTAT $EEM $RSP $XLP ~
Rosner Stocks
27 Aug 14 15:42:04
Rosner: EEM iShares Trust $EEM Company Overview Stock http://t.co/l4fqZ0ViVK
Langan Stocks
27 Aug 14 15:37:35
Rosner: EEM iShares Trust $EEM Company Overview Stock http://t.co/S9D8U9AE9W
ETF Trends
27 Aug 14 15:30:16
Dividend Growth Working for an #EmergingMarkets ETF http://t.co/y1ZbTjPPxo #ETFs #dividends #yield #income $DGRE $VWO $EEM $THD $IDX
Gary Gordon
27 Aug 14 15:27:05
Profit Margins And ‘Fairly Valued’ U.S. Stock #ETFs $TLT $XLV $EEM $SPY $SPX http://t.co/suG5G4ecED
TalkMarkets
27 Aug 14 15:27:04
Profit Margins And ‘Fairly Valued’ U.S. Stock #ETFs $TLT $XLV $EEM $SPY $SPX http://t.co/Ra3eycoUt2
Tom Lydon
27 Aug 14 15:25:05
Dividend Growth Working for an #EmergingMarkets ETF http://t.co/4x5IAdQqVH #ETFs #dividends #yield #income $DGRE $VWO $EEM $THD $IDX
Stock News Guru
27 Aug 14 15:16:10
$EEM: Emerging-Market ETF Declines as Fed Minutes Stoke Rate Concern http://t.co/6ab54Zjd7K http://t.co/bnLulxpVP6
Brett Pattison
27 Aug 14 15:05:07
Of the Emerging Mkts. India leads the past 6 mos. No BRIC is underwater Overweight $EEM #investing #stocks http://t.co/C17cgTuLLc
ETF Trends
27 Aug 14 15:02:07
S&P 500’s Race Above 2,000 Lifts Cash for its #ETFs http://t.co/LOKbIWmoXa #sp500 #stocks #ETF $SPY $IVV $VOO $EEM $RSP
Stock Forums
27 Aug 14 15:01:40
$ARIA EOD Data http://t.co/7tKaYDd1Hg Also See: $SD $SLV $INCC $EEM ~
Tom Lydon
27 Aug 14 14:55:23
S&P 500’s Race Above 2,000 Lifts Cash for its #ETFs http://t.co/JoGxIW8LN7 #sp500 #stocks #ETF $SPY $IVV $VOO $EEM $RSP
Rosner Stocks
27 Aug 14 14:49:52
$APC Bid http://t.co/DSBBNh6TLT Also See: $WLT $SD $EEM $GWPH ~
John Michael
27 Aug 14 14:39:45
RT @SeekingAlpha: Profit Margins And 'Fairly Valued' U.S. Stock ETFs http://t.co/5jytci5vPi $TLT $XLV $EEM $SPY
Cesar
27 Aug 14 14:39:09
RUSSELL TRIANGULO ALCISTA DE LARGO PLAZO OBJETIVO 1380 $IWM $RUT $TNA $TZA $SPY $SSO $SDS $DIA $EEM http://t.co/BCnFouYZJw $c $xle $xlf $jpm
				
				
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.