Exchange traded funds have bounced late this week on signs Greece will shelve a planned referendum on the financial rescue. A interest-rate cut by the European Central Bank has also helped fuel the rally.

The Stoxx Europe 600 Index ended up 2.1% Thursday, with all major European indices showing gains, reports

European markets ended higher after Greek Prime Minister George Papandreou recanted his proposed referendum vote on the new bailout package. Additionally, equities were given an extra boost after the ECB announced a surprise a 0.25% rate cut to 1.25%. [Stock ETFs Breathe Easier After Greece Referendum Shelved]

“[ECB president Mario Draghi] put much more emphasis on growth, mentioning manufacturing surveys, growth-forecast downgrades and financial conditions to explain his quarter-point rate cut. This suggests another rate cut in a month’s time,” Trevor Greetham, director of asset allocation at Fidelity Worldwide Investment, said in the WSJ article.

The markets are also watching the Group of 20 summit in Cannes, France. G-20 leaders said Europe needs to find a solution to the debt crisis to prevent a global economic slowdown, while in Greece, Papandreou is trying to hold on to power.

Broad Europe ETFs include:

  • iShares MSCI EMU Index (NYSEArca: EZU)

Single-country funds include:

  • iShares MSCI Austria Investable Mkt Idx (NYSEArca: EWO)
  • iShares MSCI Belgium Investable Mkt Idx (NYSEArca: EWK)
  • iShares MSCI Sweden Index (NYSEArca: EWD)
  • iShares MSCI France Index (NYSEArca: EWQ)
  • iShares MSCI Germany Index (NYSEArca: EWG)
  • iShares MSCI Ireland Cppd Invstb Mkt Idx (NYSEArca: EIRL)
  • iShares MSCI Italy Index (NYSEArca: EWI)
  • iShares MSCI Netherlands Invstbl Mkt Idx (NYSEArca: EWN)
  • iShares MSCI Poland Investable Mkt Index (NYSEARca: EPOL)
  • iShares MSCI Spain Index (NYSEArca: EWP)

iShares MSCI EMU Index

For more information on Europe, visit our Europe category.

Max Chen 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.