Investors Scoop Emerging Market Stocks (EEM) Ahead of FOMC

June 19, 2012 11:19 AM EDT
iShares MSCI Emerging Markets Indx ETF (NYSE: EEM) is higher in early trading on Tuesday. The move in emerging market stocks is tied to expectation that the Fed will signal continued efforts to boost growth in the U.S. when the FOMC releases comments on Wednesday. Policy officials in China have also signaled it would make efforts to spur growth in the country.

Taken together, easy policy in the U.S. and China is viewed as a possible counterbalance to contracting growth in Europe.

Investors are swooping in to pick up shares of EEM after the ETF saw a decline of 11 percent in the past three months. Intra-day emerging market stocks are higher by 1.64 percent, extending a 5 day rally totaling 4.4 percent.

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