NEW YORK (TheStreet) -- The iShares MSCI Emerging Markets (EEM) exchange-traded fund sold off heavily on Thursday because weak Chinese data and geopolitical events in emerging economies soured investor sentiment on stocks.
Emerging market equities sold off the entire session on Thursday as news from across the globe provided the needed catalyst to bring the index down from over bought levels.
The Chinese manufacturing PMI, released Wednesday, dipped to a four-month low for the final month of 2013. The number signaled that demand may be falling in the world's second-largest economy, which has negative implications for the country's future industrial output and export growth.
This could directly impact upon emerging market economies by decreasing demand for raw material exports to China, which would weigh on first-quarter 2014 GDP growth estimates.
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