PARIS — The incipient panic about Europe's debt crisis seems to have subsided into mere pessimism this week, with the euro rebounding and investors encouraged by political leaders' new willingness to take quick action to calm market fears.

The big underlying issues haven't been erased: Spain is still dogged by speculation it might eventually need a rescue plan similar to the bailout already given to Greece. And many governments are cutting back on welfare programs and other spending to chip away at their heavy debt burdens — and sometimes facing street protests as a result.

Yet positive news from trouble spots Spain and Greece — as well as EU leaders' united pledge for more banking transparency — helped buoy the euro to $1.2362 Friday, up from a four-year low last week near $1.19, and European stocks held steady.

A key decision was the move by European Union leaders at a summit in Brussels to promise they would reveal the results of stress tests designed to show how banks would do if circumstances worsen.

Worries about Europe facing a worsening crisis that could derail its hesitant economic recovery had weighed on stocks in the United States and Asia over recent weeks.

"I think the market certainly wants to believe that it's turning the corner, and of course psychological factors are at work here — it's very difficult for any market to maintain a mood of despondency for month after month," said Stephen Lewis of Monument Securities.

Pressure on the euro will probably be relieved until the month's end, though in July the currency could once again dip lower, he predicted.

For a morose Europe, the good news came in threes. First, an international delegation declared Thursday that debt-ridden Greece is on track with reforms required in its massive bailout from the European Union and the International Monetary Fund. Then Spain managed to raise $4.3 billion from what analysts deemed a successful bond offering, with more demand than there were bonds to be sold — though investors charged the government higher interest rates.