Frankfurt - German stocks rebounded strongly at the start of trading Friday, with investors encouraged by Washington's promise to fix the financial system.

After just a few minutes of trading, the bellwether DAX index in Frankfurt was running at 6125, up 4.5 per cent from the previous day's close before the announcement.

Bank stocks led the rally, with gains of as much as 18 per cent, as markets welcomed the commitment by the US Treasury and Federal Reserve to draft a rescue plan in the next few days. (dpa)