European stocks will rise another 11 percent next year, according to the average forecast of 16 major investment firms surveyed by Bloomberg.

An economic rebound and growing profits will spark the gains, they say.

Analysts on average expect European corporate earnings to jump 29 percent next year.

Goldman Sachs and Bank of America predict stocks will increase more than 20 percent in 2010, and Morgan Stanley was the only one of the 16 to forecast a loss.

Already this year, the Dow Jones Stoxx 600 Index of European stocks has surged about 60 percent from its March lows.

“Everything is in place for a great year,” Patrick Moonen, an equity strategist at ING Investment Management, told Bloomberg.

If governments start to reverse fiscal and monetary stimulus, “it’s a sign that the economic crisis is behind us, which is positive for earnings growth going forward,” he said.

The European analysts’ bullishness matches the sentiment of many of their U.S. counterparts.

Brian Belski, chief investment strategist at Oppenheimer, forecasts the Standard & Poor’s 500 Index will gain 16 percent next year.

"The widespread skepticism about the U.S. stock market and economy is based more on the unprecedented circumstances of 2007-2009 than on the outlook (ahead), which is poised to improve significantly," he wrote in his 2010 market forecast.

Bank of America strategists expect stocks to rise 15 percent next year, and Lord Abbett’s Milton Ezrati anticipates a 20 percent gain.