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4 Things to Watch as E.U. Summit Kicks Off

European leaders have convened for a two-day summit to address Europe's growing debt problem. While the outcome is uncertain at this point, exchange traded funds (ETFs) could give clues about how it's going.

Thing to Watch 1: Spain. The PIIGS are widely acknowledged to be the biggest trouble spots, and the E.U. will be focusing on them. After all, Moody's warned that it may downgrade the Spain's debt, citing that the country is too big to be handled like other smaller member states, Spain ETF Emerging from Pain…But Will It Stick?]

Thing to Watch 2: Ireland. In Ireland, lawmakers voted to accept $90.4 billion in loans from the E.U. and International Monetary Fund to bolster banks and public finances, EIRL)could go either way; is Ireland in big trouble, or are the lifelines plenty?

Thing to Watch 3: Europe and the Euro. All eyes are on this summit. That's because what does or doesn't come out of it could have big implications not just for troubled countries, but the rest of the region - if not the world. Bearish on Europe? Check out ProShares UltraShort MSCI Europe (NYSEArca: FXE) or Market Vectors Double Short Euro ETN (NYSEArca: DRR).

Thing to Watch 4: Other Countries. Not all of Europe is in pain. There are many countries - particularly those not on the euro - that are doing quite well these days. If you'd rather not bank on a PIIGS recovery, consider other more solidly positions economies such as:

  • iShares MSCI Sweden Index (NYSEArca: EWD)
  • iShares MSCI Switzerland Index (NYSEArca: EWL)
  • iShares MSCI Poland Investable Mkt Index (NYSEArca: EPOL)
  • SPDR S&P Emerging Europe (NYSEArca: GUR)

For more information on Europe, visit our Europe category .

Read the disclaimer ; Tom Lydon is a board member of Rydex|SGI.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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