The main European stock markets rebounded early on Wednesday, helped by the banking sector.

In Paris, the CAC 40 gained 1.08% to 7,348.23 points at around 07:13 GMT. In London, the FTSE 100 gained 0.59% and in Frankfurt, the Dax advanced by 0.8%.

The EuroStoxx 50 index was up by 0.94%, the FTSEurofirst 300 by 0.7% and the Stoxx 600 by 0.79%.

The Stoxx banking index regained 1.08% after falling 2.7% the previous day following a Moody's warning on US banks and Italy's announcement of an exceptional tax on the profits of the country's banks.

In response to the panic, the Italian Ministry of the Economy clarified on Tuesday evening that the new tax could not exceed 0.1% of banks' risk-weighted assets (RWA).

In Paris, Société Générale gained 1.87%, BNP Paribas

advanced by 1.9% and Crédit Agricole gained 1.16%.

The Italian bank index rebounded by 2.4% after plunging 7.6% on Tuesday.

(Written by Blandine Hénault)