The European Union and the International Monetary Fund (IMF), put an astounding $1 trillion package Monday, to help save the euro currency and protect the global economic recovery. The deal reverberated through the global markets and exchange traded funds (ETFs).

In an option aptly called “the nuclear option,” governments that use the euro will join the European Union and the IMF in putting up $965 billion, while the U. S. Federal Reserve and other Central Banks reactivated a currency swap program to help reach the $1 trillion mark.

Markets opened with a shot Monday morning, as the euro rose to $1.30 with news of the deal, as did a number of other markets throughout the international community.

  • CurrencyShares Euro Trust (NYSEArca: FXE)

  • iShares MSCI EMU Index (NYSEArca: EZU)

The mortgage finance company, Fannie Mae, (NYSE: FNM), is asking for an additional $8.4 billion in government bailout money after posting first-quarter losses of $13.1 billion, or $2.29 per share.

Financial regulators have asked the heads of major exchanges including the New York Stock Exchange Euronext and NASDAQ OMX Group to come to Washington to discuss last Thursday’s historic stock market plunge, and whether conflicting trading rules played a part.

The SEC is leading the investigation into the massive computerized sell-off, which caused the Dow Jones Industrial Average to drop nearly 1,000 points, and are worried that conflicting rules used by different exchanges could have been the cause. [ETF Lessons from the Market’s Sell-Off.]

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. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.

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