With investors apparently encouraged by the wide-ranging bank rescue plan announced by euro-zone leaders late Sunday, French shares rebounded strongly on Monday.

In mid-afternoon, the CAC 40 index was up a healthy 7.43 per cent, to 3,412.58, with 39 of 40 listed stocks gaining ground.

The surge was led by industrials, on the belief that credit would flow again to businesses and consumers.

Steel giant ArcelorMittal was up 17.86 per cent, to 25.83 euros, while energy supplier GDF Suez gained 16.77 per cent, to 28.37 euros.

Struggling car maker Renault was also sought by investors, and rose by 13.39 per cent, to 31.75 euros.

The only loser was was the bank Societe Generale, because of rumours that it was in need of recapitalization. After plunging by nearly 23 per cent, its share price was down 6.2 per cent, to 46.90 euros.

Last week, the Paris Bourse lost more than 22 per cent over the last five trading days due to uncertainty about the response of European governments to the finance crisis.