Following declines in Asia and Europe, and the largest decline in more than a year Thursday, major stock indexes and exchange traded funds (ETFs) have recovered from opening losses in early trading Friday.

Stocks continued to fall early Friday, as volatile stock futures pointed lower, pushing the market into “correction” mode. However, as metal stocks climbed and financial shares showed gains after the U. S. Senate approved the biggest financial overhaul since the 1930s, stocks are crawling back toward the black. [ETFs that Could Benefit as BRICs Get Stronger.]

  • SPDR S&P Metals and Mining (NYSEArca: XME)

Despite a rise in the euro from $1.2464 to $1.2541, the currency’s woes and ever-present concern over Europe’s debt continues to worry investors. As Germany’s Parliament approved its share of the $1 trillion bailout, European stock indexes fell more than 1% with traders concerned that stronger countries like Germany and France will be saddled with heavy debt as they help weaker E.U. countries, thus slowing the global economic rebound even further.

The United States and China will meet in Beijing next week to discuss the world’s largest bilateral trade gap, and how to narrow the staggering trade deficit, with export barriers and the yuan taking center stage. The global financial crisis has decimated American demand for Chinese goods over the past year, but Washington and Beijing will be looking for ways to balance their $400 billion trade ties, and meet President Obama’s goal of doubling U. S. exports in the next five years. [China Faces Challenges.]

  • SPDR S&P China (NYSEArca: GXC)

PepsiCo (NYSE: PEP) announced plans to invest another $2.5 billion in China over the next three years in the hopes of building another 19 plants there. News of the food and beverage maker’s future in China comes on the heels of PepsiCo’s expected completion of a 2008 $1 billion investment in the country’s growing market. [Restaurant ETFs Look Tasty.]

  • iShares Dow Jones U.S. Consumer Goods (NYSEArca: IYK): PepsiCo is 8.9%

Aaron Hurst contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.