European stocks rallied on Thursday after a sell-off earlier this week, buoyed by positive sentiment in the U.S. and a tentative rise in oil prices.

The pan-European STOXX 600 was up 1.3 percent. All sectors were trading sharply higher, with basic resources and financial stocks posting the strongest gains.

All major bourses were trading sharply higher, with London’s FTSE 100 up around 1 percent, while its domestically-focused FTSE 250 index up 1.3 percent. France’s CAC extended gains, up 1.2 percent, while Germany’s DAX jumped 0.7 percent.

Europe’s positive trade on Thursday follows a rebound in the U.S. on Wednesday on the back of a rise in oil prices and dovish minutes from the U.S. Federal Reserve’s June meeting.

Federal Reserve policymakers said it was prudent to wait for more data and the Brexit vote result before raising rates, and cited a slowdown in hiring as a reason to keep rates unchanged last month, according to meeting minutes released Wednesday afternoon. The non-farm payrolls report due Friday will be the next key data followed by markets.

Hopes that the U.K.’s vote to leave the European Union (EU) could prompt further easing by central banks around the world—or at least a delay in interest rate rises in the U.S.—are seen as a major driver for positive market sentiment. Asia markets however closed mostly mixed on Thursday, despite the Fed.

Oil markets are also being watched after prices rose in early trading on Thursday. The increase was supported by a report of another fall in U.S. crude inventories as well as a weaker dollar, however a glut of refined products and economic growth concerns continue to weigh on markets. Brent and U.S. crude are currently higher, trading around $49.30 and $47.95 around 12.30 p.m. U.K. time.

Elsewhere in commodities, basic resources was Europe’s top sector, up over 3 percent, as a positive outlook from several brokers on particular stocks boosted sentiment. Jefferies and UBS raised their price target for Anglo American, BHP Billiton, Antofagasta and Glencore, sending shares in all of the miners up above 2.5 percent each.

On the currency front, sterling recovered some of its losses after hitting a fresh 31-year low on Wednesday. The pound was up against the dollar on Thursday, trading at $1.3034 around 12.30 p.m. London time.

In business news, Danone said it would acquire WhiteWave Foods in a deal that values the U.S. organic foods producer at $12.5 billion, in what would be the French company’s biggest acquisition in 10 years. Danone shares rallied over 3.5 percent on the news.

A number of companies also reported trading updates and earnings. Britain’s Marks & Spencer saw shares slip after it reported an 8.9 percent like-for-like fall in clothing and home sales in the 13 weeks to July 2, while food sales 0.9 percent. The retailer said it was “too early to quantify the implications of Brexit” and reiterated its full-year guidance.

U.K. retailer Sports Direct reported an 8.4 percent year-on-year decline in pretax profit for the year ending April 24. Despite this, shares of the sports retailer jumped 4 percent.

Primark owner Associated British Foods was up over 8 percent after it said revenue for the 40 weeks ended June 18 was 3 percent ahead of the same period last year at constant currency. Sales at Primark in the year-to-date were 7 percent ahead of last year.

British housebuilder Bovis Homes said it had traded in line with expectations in the first half of 2016 and it is “too early” to assess the impact of the country’s EU referendum. Shares of the company jumped 5.5 percent.