Exchange traded funds tracking U.S. and European stocks bounced Wednesday morning on relief a German court has cleared the country’s participation in the Eurozone bailouts.
SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) rose 1.2% at the open as the Dow added more than 100 points.
Vanguard European ETF (AMEX: VGK) also climbed more than 1% in early U.S. trading on Wednesday.
Stock ETFs were reversing three straight days of losses as equities have stumbled out of the gate in September, a traditionally weak month, on worries over global debt levels and weak economic data. [Stock ETFs Open September with Thud]
“We’ve been in a trading range and yesterday we hit the bottom of that. The news out of Europe looks positive for the market, but I see this as a short-term technical rebound,” said Peter Cardillo, chief market economist at Rockwell Global Capital, in a Reuters report.