PIIGS ETFs Not Out of the Woods Yet | ETF Trends

The so-called PIIGS may not be making headlines the way they did this summer, but signs about that trouble still reigns in these debt-riddled nations. Their exchange traded funds (ETFs) could feel the pain.

The leaders of the PIIGS – Portugal, Ireland, Italy, Greece and Spain – are becoming painfully aware that spending needs to be reined in if they have any hope of restoring confidence in their economies.

The latest example of troubles in the group comes from Portugal. Austerity budget talks collapsed last week, just before a European Union summit in Brussels.

  • iShares MSCI Ireland (NYSEArca: EIRL)
  • iShares MSCI Italy (NYSEArca: EWI)
  • iShares MSCI Spain (NYSEArca: EWP)

According to Matthew Mallon for Minyanville, Greece is not going to be able to cut their deficit, Ireland is facing the worst budget shortfall of all, and the Portuguese budget derailment has pushed the spread between Portuguese 10-year bond yields and German benchmark issues up 0.20%. [Germany ETF Emerges From Crisis.]

The Business Insider on Yahoo Finance reports that despite the ongoing issues, the euro is totally unmoved. Unlike what happened this summer, when it plummeted, the euro has held fast around $1.40.

These troubled economies might wind up needing new bailouts, beyond any intervention by the ECB.

Tisha GUerrero 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.