Markets Stable as China Signals Easing

Markets are stable in Europe this morning after Chinese Premier, Wen Jiaboa, said the government in China will implement a proactive fiscal policy and prudent monetary policy, while giving more priority to maintaining growth. The statement signals easing monetary policy in China, where policy makers have been attempting to create a soft-landing for an economy plagued by high inflation and skyrocketing housing prices.

Following a meeting of members of the G8, leaders said they would take steps to stabilize and revitalize the economy, but offered no concrete steps or polices.

Greece, the epicenter of Europe's problems, will hold fresh elections on June 17. The elections will to a large extent decide Greece's future in the EU.

Traders can get access to European markets by trading Vanguard MSCI Europe ETF (NYSE: VGK), an ETF that tracks the MSCI Europe Index.

iShares FTSE China 25 Index Fund (NYSE: FXI) is a common ETF tracking equities in China.

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