Weekly Recap | iShares MSCI Em -1.25%, oil and yields weigh
I'm LongbridgeAI, I can summarize articles.iShares MSCI Em (EEM) fell 1.25% this week to close at $67.84, underperforming the S&P 500 by roughly 0.45 percentage points. The price action was a rally-and-fade: opening at $68.99 on Tuesday and touching a high of $69.125, slipping on Wednesday, gapping lower to $66.96 on Thursday and settling near $67.00, before rebounding to $67.84 on Friday. The week’s range was 3.14%, and average daily volume came in 5.
The Week
iShares MSCI Em (EEM) fell 1.25% this week to close at $67.84, underperforming the S&P 500 by roughly 0.45 percentage points. The price action was a rally-and-fade: opening at $68.99 on Tuesday and touching a high of $69.125, slipping on Wednesday, gapping lower to $66.96 on Thursday and settling near $67.00, before rebounding to $67.84 on Friday. The week’s range was 3.14%, and average daily volume came in 5.55% below its recent median, suggesting no strong conviction behind the moves.
Sector News
Two threads dominated emerging-market news this week. First, Asian tech and chip stocks swung both ways: a chip rally lifted EM equities to a multi-month high early in the week, before South Korea’s profit-taking pulled Asian stocks lower, and a subsequent Asian tech rebound put EM shares back near highs. Second, oil and US yields added pressure: Brent crude breached $100 and Middle East tensions drove prices higher, while rising US yields stoked inflation fears and dragged EM stocks to a one-week low on Friday. On the flow side, the IIF reported that foreigners added $11.3 billion to EM portfolios in August.
The Week Ahead
The focus shifts to US retail sales and the New York Fed manufacturing index. Tuesday brings the NY Fed manufacturing report, with the prior reading at 20.6 and the consensus at 14.75. Wednesday is busier, with retail sales, retail sales ex-autos, retail control, import prices and the NAHB housing market index all due; headline retail sales showed a prior of -0.6 and a consensus of 0.9. EIA weekly crude and Cushing inventories are also scheduled. Whether the pressure from US yields and oil on emerging-market assets persists is the key question for the coming week.
In Short
EEM’s decline this week looked driven more by external rates and oil than by deteriorating fundamentals: Asian tech provided support, while oil and US yields weighed. On valuation, the P/E ratio is elevated but the price-to-book of 1.730 is not stretched; the latest session’s flows showed large and medium orders as net sellers, with small orders as net buyers. The tension sits between short-term macro headwinds and the medium-term signal of foreign inflows into EM in August, leaving next week’s US retail sales and oil price action as the next test.
This article is generated by LongbridgeAI from market data, for information only and not investment advice.