NEW YORK ( TheStreet) -- Financial ETFs rose on Tuesday after Swiss bank UBS ( UBS) and Germany's Deutsche Bank ( DB) reported stronger-than-expected numbers, revised Basel III proposals were less stringent than expected and concerns about the health of European banks abated following the stress tests.

The iShares S&P Global Financials ( IXG) rose 1.7% to $44.07 on Tuesday. Its top holding HSBC ( HBC) ended higher by 2.6%.

America's big banks Bank of America ( BAC), JP Morgan ( JPM) and Wells Fargo ( WFC) rose in early Tuesday trading as financial ETFs attracted buyers, though gains ebbed towards the end of the trading session.

The SPDR Regional Banking ETF ( KRE) climbed 1.6% after Regions Financial ( RF) became the latest large regional bank to beat estimates with higher than expected improvements in credit quality. It ended up nearly 1% higher at $24.29.

Utility ETFs were in the limelight on Tuesday. Utilities HOLDRS ( UTH) and Vanguard Utilities ( VPU) were up 1.6% and 1.5% respectively.

Consumer-focused ETFs such as the SPDR S&P Retail ( XRT) and SPDR Consumer Discretionary ( XLY) saw some selling after consumer confidence sank to a five-month low. The funds were down by 1.7% and 1.3% respectively.

The United States Oil Fund ( USO) was shedding 1.9%, with the price of oil slipping nearly 2% to $77.43.

-- Reported by Shanthi Venkataraman in New York.

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