Europe was quick to return to lockdown mode after the Omicron variant first surfaced, but when the effects of the pandemic ease, traders can play the Direxion Daily FTSE Europe Bull 3X ETF (EURL).

As more medical data comes out regarding the severity of the Omicron variant, European markets could be rebounding. Heading into the Christmas holiday, the pan-European Stoxx 600 index was already ticking higher as investors dialed up their penchant for risk.

“Investors reacted to a study out of South Africa — where the omicron strain was first discovered — suggesting a reduced risk of hospitalization and severe disease compared with delta,” CNBC reports. “The study, which is not yet peer-reviewed, found people diagnosed with omicron in South Africa in the two months through November were less likely to be hospitalized than if they caught another variant in the same period.”

EURL, which is up over 40% for the year, seeks daily investment results that are equal to 300% of the daily performance of the FTSE Developed Europe All Cap Index. The index itself is a market capitalization-weighted index that is designed to measure the equity market performance of large-, mid-, and small-cap companies in developed markets in Europe.

EURL Chart

Playing Bullishness in the U.S.

Positive news surrounding the severity of Omicron will certainly affect markets back in the United States as well. Investors will likewise be turning up the risk dial heading into 2022 as more data reveals itself, which could boost major stock market indexes like the S&P 500.

“These glimmers of hope have boosted global share markets,” the CNBC report adds. “On the other side of the Atlantic, the Dow and other major U.S. averages all rose as investors looked past earlier jitters about omicron.”

This will certainly help the case for bullish traders of the S&P 500. That said, one ETF they can play to amplify their gains should upside occur is the Direxion Daily S&P 500® Bull 3X Shares ETF (SPXL).

SPXL provides triple the exposure to the S&P 500 index. It invests at least 80% of its net assets in financial instruments, such as swap agreements and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.

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