European stock markets rebound

European stocks rebounded from the biggest drop in a month yesterday amid concern recent losses are overdone, considering the outlook for company earnings.

KBC, Belgium’s biggest bank and insurer, and ING Groep NV, the largest Dutch financial-services company, each gained more than 2%.

EON and RWE rose after Commerzbank upgraded its recommendations on Germany’s biggest utilities. Cable & Wireless surged 20% after reporting earnings that beat estimates.

The Stoxx Europe 600 Index rose 1.3% to 242.58 yesterday afternoon in London. The benchmark gauge had retreated for three straight weeks, driving its valuation to 9.9 times estimated earnings, near the cheapest since January.

National benchmark indexes rose in all the western European markets yesterday, except for Iceland and Greece. The UK’s FTSE 100 rallied 1.9%, Germany’s DAX advanced 0.9% and France’s CAC 40 gained 1.6%. The Greek ASE Index plunged 4.5% to the lowest level since January 1990.

The volume of shares changing hands in Stoxx 600 companies was 2% above the average over the past 30 days.

— Bloomberg