A rebound in commodity and energy producers led the advance in European equities, while earnings at Siemens AG and Royal Philips NV further boosted sentiment.

The Stoxx Europe 600 Index climbed 0.9 percent at the close of trading in London. It erased a decline of as much as 2 percent as crude rose above $30 a barrel after Iraq’s oil minister said Saudi Arabia and Russia are now more flexible about cooperating to cut output.

Siemens surged 8.6 percent — the most since 2008 — after unexpectedly raising its annual profit forecast, signaling confidence that it can ride out a slowdown in China and drop in oil. Philips jumped 6.1 percent after reporting that quarterly earnings rose more than estimated on growth in medical equipment.

Fluctuations in oil have been weighing on stocks worldwide as the two asset classes have become the most correlated since 2013. Crude’s decline on Monday halted the Stoxx 600’s biggest two-day rebound since 2011, fueled by speculation of more European Central Bank stimulus.

Source: Bloomberg