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.

Amsterdam - The main index of the Dutch stock exchange AEX rose sharply on Monday following the US government's bail-out of American largest mortgage banks Fannie Mae and Freddie Mac on Sunday.

By 10:23 am (8:23 AM GMT) the AEX had risen by 3.89 per cent, with the financial funds gaining most.

Belgian-Dutch bank and insurance company Fortis rose 8.65 per cent and stood at 9.907 euros.

Insurer Aegon stood at 8.525 euros, up by 7.68 per cent, followed by ING Bank which rose by 7.64 per cent. Employment agency Randstad came in fourth, with shares rising 7.02 per cent.

Dutch-British food company Unilever was the only one to drop, down by 0.10 per cent.

London - Shares in leading British banks rallied strongly on the London Stock Exchange Monday following news of the US government's bail-out of mortgage giants Fannie Mae and Freddie Mac.

Frankfurt - The DAX index of the 30 top German shares clawed back much of last week's losses in early trade Monday, rising more than 3 per cent on news of a government bail-out for battered US mor