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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
John Pherris
29 Aug 15 09:51:14
RT @harmongreg: $SPY Trends & Influencers August 29, 2015 - Dragonfly Capital $IWM $QQQ $GLD $USO $UUP $TLT $ASHR $FXI $EEM $VXX $VIX http:…
IH News Desk
29 Aug 15 09:50:45
$GOOG Short Sales Updated Saturday, August 29, 2015 12:11:11 PM $FORD $GG $EEM $GLD http://t.co/Tfa3woZWlR
nasdaqfan
29 Aug 15 09:50:36
XLP Consumer Staples Select Sector SPDR Market Cap http://t.co/JXlJdZQwMD $XLP $XLU $EEM $GS #XLP #tradeideas #finance
DennyT
29 Aug 15 09:50:36
XLB Materials Select Sector SPDR P/E Ratio http://t.co/kzkz7FAEZb $XLB $EEM $CIEN $EXPE #XLB #stock #stocks
jim50
29 Aug 15 09:49:06
VRA Vera Bradley Inc. Dividend http://t.co/WdxqE1t0wC $VRA $XBI $EEM $IAU #VRA #stock #share
Lucky Jimmy
29 Aug 15 09:49:04
VNR Vanguard Natural Resources, LLC Yield http://t.co/Y6LVogT1VK $VNR $MEI $HZNP $EEM #VNR #stock #stocks
Stock Forums
29 Aug 15 09:49:03
VLTC Voltari Corp. Company Info http://t.co/TrYxdpiO7S $VLTC $CVX $TZA $EEM #VLTC #finance #invest
Emylers
29 Aug 15 09:49:03
UWTI VelocityShares 3x Long Crude ETN Stock Message Board http://t.co/308MSB0C5N $UWTI $EEM $PRGN $NUGT #UWTI #invest #nasdaq
Investors Hangout
29 Aug 15 09:47:38
UBT ProShares Ultra 20 Plus Year Treasury Filings http://t.co/mhI7fPya6I $UBT $DUST $EEM $CTIC #UBT #finance #share
leahanne
29 Aug 15 09:47:37
TZA Direxion Daily Small Cap Bear 3x Shares News http://t.co/5WnmSCGMtR $TZA $NFLX $RJI $EEM #TZA #tradeideas #tradeideas
leahanne
29 Aug 15 09:47:20
TSO Tesoro Petroleum Corp. Short Sales http://t.co/63IyXkjXmx $TSO $TSS $NUGT $EEM #TSO #stocks #finance
PolgarStocks
29 Aug 15 09:47:16
TQQQ ProShares UltraPro QQQ Current Price http://t.co/tjWnuxlL0s $TQQQ $XLV $EUM $EEM #TQQQ #stocks #invest
IH NASDAQ OMX
29 Aug 15 09:47:11
TNA Direxion Daily Small Cap Bull 3x Shares Day Low http://t.co/LEHZVfiWOn $TNA $PG $ADT $EEM #TNA #share #stock
nasdaqfan
29 Aug 15 09:45:04
SH ProShares Short S&P 500 Fund Stock Message Board http://t.co/aMyDH6KncC $SH $EEM $INTC $BIDU #SH #investing #nasdaq
nasdaqfan
29 Aug 15 09:44:32
RJI ELEMENTS Rogers Intl Commodity Index - Total Return % Change http://t.co/rgKgOq9xSc $RJI $EEM $ACI $VTI #RJI #tradeideas #invest
DennyT
29 Aug 15 09:44:07
SCMP Sucampo Pharmaceuticals Inc. Short Sales http://t.co/gfZU5otg7h $SCMP $EEM $SUNE $EXA #SCMP #finance #stocks
Somanath
29 Aug 15 09:43:07
1LuckyJimmy : KMI Kinder Morgan Inc. Investor Opinions http://t.co/jKaU5N68dD $KMI $EEM… http://t.co/proeWlSXlR) http://t.co/DBfLHk7t99
Stock_Tracker
29 Aug 15 09:42:34
P Pandora Media, Inc. Message Board Posts http://t.co/JQpd54zk04 $P $ZEB.TO $SBLK $EEM #P #tradeideas #stocks
moderneconomist.com
29 Aug 15 09:41:56
RT @harmongreg: $SPY Trends & Influencers August 29, 2015 - Dragonfly Capital $IWM $QQQ $GLD $USO $UUP $TLT $ASHR $FXI $EEM $VXX $VIX http:…
Lucky Jimmy
29 Aug 15 09:41:34
KMI Kinder Morgan Inc. Investor Opinions http://t.co/vhigI1jg8h $KMI $EEM $CEE.TO $EXPE #KMI #stockmarket #stock
Investors Hangout
29 Aug 15 09:40:00
GS Goldman Sachs Group, Inc. 52Wk High http://t.co/2sGM5H8Sba $GS $BABA $EEM $STZ #GS #pennystocks #stocks
Investors Hangout
29 Aug 15 09:39:57
FOSL Fossil Group, Inc. Open http://t.co/wu57V49e3n $FOSL $USCOX $USCOX $EEM #FOSL #investing #stocks
Greg Harmon, CMT
29 Aug 15 09:37:59
$SPY Trends & Influencers August 29, 2015 - Dragonfly Capital $IWM $QQQ $GLD $USO $UUP $TLT $ASHR $FXI $EEM $VXX $VIX http://t.co/P1eIs7TlQY
Investors Hangout
29 Aug 15 09:37:18
EEM iShares MSCI Emerging Markets Day Low http://t.co/d99l7aIWrP $EEM $DANG $VEA $XRT #EEM #pennystocks #tradeideas
Investors Hangout
29 Aug 15 09:37:13
ELLI Ellie Mae Inc. 52Wk Low http://t.co/PPio9kcbaR $ELLI $UCO $EEM $BTU #ELLI #invest #share
Emylers
29 Aug 15 09:37:12
EEM iShares MSCI Emerging Markets Ex-Div Date http://t.co/6kBQwvWVWR $EEM $FV $FITX $ELLI #EEM #share #share
clayton
29 Aug 15 09:37:09
FCX Freeport-McMoRan, Inc. Day Low http://t.co/8Y6Vp3h4BX $FCX $TBEV $EEM $SHY #FCX #pennystocks #investing
clayton
29 Aug 15 09:37:09
EEM iShares MSCI Emerging Markets Bid Size http://t.co/Eqbb0p9kJn $EEM $PANW $EWY $PFE #EEM #pennystocks #invest
clayton
29 Aug 15 09:37:07
EEM iShares MSCI Emerging Markets Message Board Posts http://t.co/yX5LAwsLxL $EEM $XLB $COST $BYD/UN.TO #EEM #stockmarket #stockmarket
Lucky Jimmy
29 Aug 15 09:37:07
EEM iShares MSCI Emerging Markets 52Wk High http://t.co/h4l9taMYi9 $EEM $BTU $TBEV $LQD #EEM #investing #investing
Stock_Tracker
29 Aug 15 09:37:07
EEM iShares MSCI Emerging Markets Stock Message Board http://t.co/AJmypA0obH $EEM $VEA $CSCO $APA #EEM #stock #invest
clayton
29 Aug 15 09:36:05
ERII Energy Recovery Inc. Open http://t.co/bkDRENYzM1 $ERII $CTIC $CTIC $EEM #ERII #invest #pennystocks
lookn4wins
29 Aug 15 09:35:49
EEM iShares MSCI Emerging Markets Summary http://t.co/Cn6oCqQ0p7 $EEM $SUNE $HYG $XLK #EEM #investing #investing
Stock Forums
29 Aug 15 09:35:45
CRGP Calissio Resources Group, Inc. Financials http://t.co/RuqAK3OOKB $CRGP $NCS $EEM $XLE #CRGP #stock #investing
IH NASDAQ OMX
29 Aug 15 09:35:44
EEM iShares MSCI Emerging Markets Tick http://t.co/O8xZ7oTZdL $EEM $COP $PSX $ERII #EEM #invest #invest
Stock_Tracker
29 Aug 15 09:35:43
DRN Direxion Daily Real Estate Bull 3x Shares News http://t.co/yv1663PQ9I $DRN $ORLY $EEM $SEAC #DRN #invest #stocks
Lucky Jimmy
29 Aug 15 09:35:19
EEM iShares MSCI Emerging Markets Message Board Posts http://t.co/ZzBSW1l3dg $EEM $SMH $BLTA $BABA #EEM #nasdaq #invest
IH News Desk
29 Aug 15 09:35:16
CSX CSX Corp. Ask http://t.co/dyer50WlwK $CSX $GOOGL $SSRI $EEM #CSX #investing #nasdaq
Rosner Stocks
29 Aug 15 09:35:11
CLD Cloud Peak Energy Inc. Volume http://t.co/rEmDGenLBd $CLD $_DBA $EEM $PTN #CLD #stocks #stockmarket
lookn4wins
29 Aug 15 09:34:10
CFI Culp, Inc. Last Trade http://t.co/fpAGwqsQwz $CFI $EEM $V $PTN #CFI #finance #pennystocks
Investors Hangout
29 Aug 15 09:32:36
APS.TO Aptose Biosciences Inc. 52Wk High http://t.co/bzk56yuEgz $APS.TO $EEM $LNG $XIV #APS.TO #pennystocks #investing
danrocks
29 Aug 15 09:31:15
AAPL Apple, Inc. Change http://t.co/MhvXO3GgaA $AAPL $ACO/X.TO $EEM $XHB #AAPL #pennystocks #nasdaq
Stock Forums
29 Aug 15 09:31:11
AHS AMN Healthcare Services, Inc. EOD Data http://t.co/F4UoOTqWgh $AHS $EEM $DUST $LUV #AHS #tradeideas #pennystocks
Jonathan Davis
29 Aug 15 08:56:21
RT @ATMcharts: NEW Macro Market Outlook: Just Like That http://t.co/kZFWgdl4J1 $GREK #GREECE $SPY $EEM $OIL $RSX http://t.co/VP4tqVsLmQ
PolgarStocks
29 Aug 15 08:46:10
$HYG Opinions Updated Saturday, August 29, 2015 11:07:16 AM $EEM $IEP $VALE $SVXY http://t.co/QOZZyphz7L
danrocks
29 Aug 15 08:44:16
SBUX Starbucks Corp. Financials http://t.co/KqK7BGYAwK $SBUX $LQD $EEM $F #SBUX #tradeideas #pennystocks
Rosner Stocks
29 Aug 15 08:41:39
$INO Stock Price Updated Saturday, August 29, 2015 10:59:20 AM $STEV $EEM $EFA $EA http://t.co/Hy1lnJXfoX
jim50
29 Aug 15 08:37:04
EEM iShares MSCI Emerging Markets Day Low http://t.co/gLskBUiu5k $EEM $RIG $MTL.TO $XLP #EEM #tradeideas #nasdaq
Emylers
29 Aug 15 08:35:02
BOBE Bob Evans Farms, Inc. Day Low http://t.co/arD5uugqAY $BOBE $A $EEM $BBRY #BOBE #finance #invest
Stock_Tracker
29 Aug 15 08:32:13
ACI Arch Coal, Inc. Yield http://t.co/8RSclzh1r5 $ACI $VEU $EEM $SIRGQ #ACI #investing #tradeideas
				
				
By  +Follow December 19, 2013 1:28PM
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