Stockholm - Nordic stock markets rebounded Monday in the wake of the US government bail-out of mortgage lenders Fannie Mae and Freddie Mac.

Banking groups including Swedbank and Skandinaviska Enskilda Banken (SEB) surged some 10 per cent in Stockholm where the OMX Stockholm 30 Index that groups the 30 most actively traded stocks gained some 4.1 per cent in mid-morning trading.

Swedish home appliance maker Electrolux that has has a large market in the US also increased as did engineering group Atlas Copco.

In Denmark, the OMX Copenhagen index gained 3.7 per cent while in Finland the Helsinki OMX index of 25 main stocks was up 3.3 per cent.

The OMX group - acquired by Nasdaq - operates the exchanges of Stockholm, Copenhagen, Helsinki and the three Baltic capitals Tallinn, Riga and Vilnius. (dpa)