Exchange traded funds that invest in Europe were set for a higher open Wednesday in the U.S. as worries over the region’s debt crisis recede somewhat.

European stocks have risen the past several days with sentiment boosted by a bank merger in Greece, less intervention by the European Central Bank in markets, and an Italian bond auction.

Greek stocks rallied following news of the merger of EFG Eurobank and Alpha Bank, announced Monday. However, analysts warn that this does not mean the financial sector in Europe is at a turning point. [European ETFs React to Greek Bank Merger]

The EFG/Alpha merger is aimed at growing a buffer– a 3.9 billion euro buffer — of new capital by selling assets and undertaking a big rights issue, reports George Hay for Reuters.

“There cannot be a liquidity problem for the European banking system,” said Jean-Claude Trichet, European Central Bank President, noting that there are about $700 billion in loans outstanding from the ECB and a further willingness to lend whatever banks need. [European Stock ETFs Pressured by Banks]