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.