Frankfurt - European stocks rebounded strongly Monday from last week's dramatic sell off after a recovery in shares across the Asian-Pacific region and stepped up political action to shore up investor confidence.

After European equities plunged last week by about 20 per cent last week, Europe's blue-chip Stoxx 50 climbed more than 4.0 per cant to 2182 in early trading.

Leading the rebound in European shares were banking stocks which chalked up gains of about 20 per cent in early Monday trading. (dpa)