European Stocks Surge as Leaders Boost Efforts to Contain Crisis

European stocks surged, rebounding from their biggest selloff in two months, amid speculation euro-area policy makers are intensifying their efforts to contain the sovereign-debt crisis.

Banks rose after draft guidelines showed Europe’s rescue fund may insure as much as 30 percent of sovereign bonds. Dexia SA and KBC Groep NV gained as Belgium tapped bond markets. Mining and energy companies climbed with commodities after holiday sales rose to a record in the world’s largest economy.