Basic resources lead the Stoxx 600 sectors, up more than 3 percent. Shares in mining giant BHP Billiton and Anglo American are up more than 4 percent.
Banking is another sector that investors are keeping a close eye on as analysts remain worried about the state of the European banking system. The Stoxx Europe 600 banking index is trading slightly lower this morning, but shares in big banks such as Deutsche Bank and Credit Suisse tried to hold gains.
In London, shares in Bovis Homes were down more than 5 percent after a profit warning and a downgrade of its 2016 estimate for home sales, citing slower-than-expected build production across the group's sites in December.
Investors are going to keep their focus on Banca Monte dei Paschi di Siena after the European Central Bank told the troubled Italian lender that it needs to plug an 8.8 billion-euro ($9.2 billion) capital shortfall. Shares in the lender have not yet opened for trade.
In other news, Volkswagen has acquired Canadian parking payment app PayByPhone for an undisclosed sum. The Vancouver-based app was founded in 2000 and claims to have processed 300 million dollars in annual transactions. This comes after VW launched a 50-person division in Berlin to invest in mobility services earlier this year. Shares in Volkswagen are trading slightly higher.
Meanwhile, drugmaker Sanofi has sued Novo Nordisk in the United States. The French drugmaker has accused its Danish rival of falsely claiming that Sanofi's insulin treatment would no longer be available to U.S. customers, paving the way for extra business for Novo's competitor drug. Sanofi's complaint seeks an order that would force Novo Nordisk to withdraw marketing materials for its Tresiba drug and pay an undisclosed amount in damages.