Spain Said to Recover from Second Recession Since '08 (FXE) (EWP)

No more pain in Spain?

The Bank of Spain estimated in its monthly bulletin today that Spain's gross domestic product (GDP) saw a sequential gain of 0.1 percent in Q3, from contraction of 0.1 percent in Q2 and a slump of 1.2 percent reported in the same period last year.

Data points to Spain emerging from a two-year recession, its second since 2008.

With domestic demand down 0.3 percent in Q3 for Spain, much of the growth as been from international activity. Private consumption rose 0.1 percent in the quarter.

While Spanish Prime Minister Mariano Rajoy said that growth in the country moving forward would be slow and gradual, outside investors are taking another look. On October 21st, Microsoft (Nasdaq: MSFT) Chairman and founder Bill Gates bought a six percent stake in Spanish builder Fomento de Construcciones & Contratas SA, hinting that a bottom might be forming.

While the CurrencyShares Euro Trust (NYSE: FXE) ETF is down modestly Wednesday, investors might look to iShares MSCI Spain Capped ETF (NYSE: EWP) for exposure to the market.

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