iShare MSCI Eurozone ETF

EZU

Market cap $8.48B

European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news, and rising expectations of US monetary easing. Germany's DAX led the region's major indices, advancing 0.22% to end the day at 23,777.

Europe's macro outlook is shifting. After years of fiscal restraint and fragmented policy, the region is entering a new chapter - one centered on pro-growth fiscal policy, energy security, and capital-market reform.

European Union governments and the European Parliament have reached agreement on harmonising the 27-nation bloc's insolvency laws to make it easier to invest across the EU and create a more liquid EU capital market, the EU Council said in a statement.

Europe's rally shows no signs of slowing and ETFs like VGK, EZU, BBEU, IEUR and FEZ are tracking the region's surging markets and strong earnings momentum.

U.S. bond markets were shut for Veterans Day. Meanwhile, eurozone government bond yields edged up on growing optimism the U.S. government shutdown is soon ending.

European stocks are expected to maintain their positive momentum as an end to the U.S. government shutdown is in sight.

"We continue to stay in a good place." ECB governing council member Martin Kocher tells Lizzy Burden there's "no pre-commitment" on any rate path

On a YTD basis, the iShares MSCI Eurozone ETF has outperformed US and global stocks by 2x and 1.63x, respectively. EZU which tracks the MSCI EMU Index, does a good job as a passively managed ETF and is reflected by relatively low tracking errors. We highlight why EZU isn't as competent as VGK - the largest European ETF.

Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.

European stocks are set to open higher on Tuesday, continuing positive momentum from the start of the week on the back of the region's defense stocks.