Meanwhile, a new idea may be brewing among European officials–enlarging the bailout fund to $2.7 trillion, rather than the $600 billion capacity on the table now.

Vanguard European ETF (NYSEArca: VGK) rose about 3% on Tuesday while SPDR STOXX Europe 50 ETF (NYSEArca: FEU) gained 5%.

SPDR STOXX Europe 50 ETF


Tisha Guerrero contributed to this article.