Germany led a rebound in European exchange traded funds on Wednesday as markets continue to move on the latest headlines on the debt crisis.
“The market has been Euro-focused for the last week or last week and a half, it’s very much a day-by-day situation,” said Paul Nolte, managing director at Dearborn Partners, in a MarketWatch report.
Stock ETFs recovered their losses Wednesday after reports Austria’s parliament committee didn’t approve an expansion of the European bailout fund.
There is also lingering speculation that China and other countries may purchase European government bonds to help stabilize markets.
The iShares MSCI EMU Index Fund (NYSEArca: EZU) was up more than 2% in U.S. trading Wednesday. The iShares MSCI Germany (NYSEArca: EWG) added 3.6%.
Italy, the Eurozone’s third largest economy, has asked China to buy large amounts of its debt, according to reports this week — iShares MSCI Italy (NYSEArca: EWI) rose 2.2% on Wednesday. Meanwhile, the lower house of Parliament in Italy is expected to approve the revised austerity plan, a mix of tax hikes and spending cuts intended to balance the budget by 2013, reports James Mackenzie for Reuters.
Spain, Greece and Portugal have all turned to China in times of distress since the 2007 global credit crisis.
iShares MSCI Germany
Tisha Guerrero contributed to this article.