This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Emerging Markets Can't Catch a Break

Stocks in this article: JJC DBE EEM EMB

NEW YORK (TheStreet) --Emerging-market assets continue to struggle as the Chinese economy weakens and tensions remain elevated in Ukraine.

Chinese exports unexpectedly fell in February by 18.1%, against forecasted growth of 6.8%, signaling the Chinese economy could be slowing

Both iPath DJ-UBS Copper TR Sub-Idx ETN (JJC) and PowerShares DB Energy (DBE) fell on the news on fear that less economic activity in the world's second-largest economy will weigh on demand for emerging-market resources and hurt growth in those countries during the coming months.

Meanwhile, negative investor sentiment surrounding the Russia-Ukraine conflict has weighed on iShares MSCI Emerging Markets (EEM) and iShares JPMorgan USD Emerg Markets Bond (EMB) prices.

It looks as if violence will flare up soon in the Soviet region as reports have surfaced that pro-Russian forces opened fire at a Ukrainian military base in Crimea on Monday and as the North Atlantic Treaty Organization announced it would conduct flybys along its eastern front to survey what was happening in the Black Sea peninsula.

If Russia goes from a war of words to actual bloodshed, the West may be forced to intervene, and investors could further pull funds out of emerging markets.

Emerging-market assets have had trouble gaining traction for a move higher the past few months, and as long as economic and geopolitical risks continue to mount, investors will be wary of investing in developing economies. EEM Chart
EEM data by YCharts

At the time of publication, the author had no position in any of the funds mentioned.

Follow @macroinsights

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,659.53 -13.07 -0.07%
S&P 500 2,053.37 +1.55 0.08%
NASDAQ 4,762.8050 +4.9260 0.10%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs