The iShares MSCI Spain Index Fund (NYSEArca: EWP) rose 1% in early U.S. trading Monday along with European stock indices after last week’s drubbing amid reports European officials will seek more funds to fight the reemerging debt crisis.
The Spain ETF is on a four-week losing streak during which it has shed about 14%. Last week the fund dropped to its lowest level in about three years. [Spain ETF Falls to Lowest Since March 2009 on Debt Woes]
Yields on Spanish 10-year government bonds rose above 6% on Monday, a danger zone that economists say is unsustainable.
European officials travel to the U.S. this week to seek a bigger global war chest to combat the debt crisis as Spain grapples with renewed market fears over its debt, Bloomberg News reported.
“After three months that were calmer than expected, the euro crisis is back,” said Holger Schmieding, chief economist at Berenberg Bank, in the article. “The speed of the recent surge in yields has elements of a renewed market panic.”