European stock markets soared Monday, ending with broad-based gains as a rally by oil futures and some metals calmed investor nerves after the recent commodity rout.

The Stoxx Europe 600 index SXXP, -0.66% jumped 1.7% to 331.82, the highest close since Feb. 2, FactSet data showed.

“A rebound in oil prices and a rally in Asia, after a change in China’s chief market regulator, has seen European markets rise…as investors attempt to capitalize on the continued positive momentum and move back towards risk,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, in a note.

“However, although the general trend of markets is higher, the sharp moves in both directions seen last week do suggest continued uncertainty and volatility is likely to continue,” she added.

The pan-European index logged its best week since January 2015 last week, but only after swinging between sharp gains and losses throughout the period.

Oil optimism: Both crude CLH26, CLJ26, and Brent UK:LCOJ6 posted solid gains in Monday’s session, after industry group Baker Hughes on Friday reported a drop in the U.S. oil rig number, marking the ninth straight week of declines. Fewer oil rigs indicate oil companies are scaling back on production, potentially easing concerns about a global supply glut.

The jump in oil prices helped lift European energy companies. Shares of Tullow Oil PLC TLW, -8.16% gained 2.2%, Seadrill Ltd. SDRL, +12.64% climbed 4.9%, and heavyweight Total SA FP, -1.34% TOT, -2.29% added 2.7%.

Metals jump: Iron ore prices also rallied to trade around a five-month high, helping lift European miners and metal companies. Shares of Anglo American PLC AAL, +0.50% jumped 10.8%, ArcelorMittal SA MT, +0.66% gained 7.4%, and Rio Tinto PLC RIO, +0.34% RIO, -0.46% RIO, +1.26% advanced 8.4%.

Indexes: The U.K.’s FTSE 100 index UKX, -0.70% climbed 1.5% to 6,037.73, partly boosted by a slide in the pound GBPUSD, -0.42% . Sterling dropped to $1.4149 from $1.4405 late Friday in New York, and hit levels not seen since 2009.

See:‘Brexit’ risks leave pound extremely undervalued, analysts say

The steep drop came after London Mayor Boris Johnson said he’s backing a so-called “Brexit”, the campaign for the U.K. to leave the European Union, in a referendum scheduled for June 23.

Read:Euro to jump if the U.K. votes for a ‘Brexit’, says J.P. Morgan

Elsewhere, Germany’s DAX 30 index DAX, -0.69% rose 2% to 9,573.59, while France’s CAC 40 index PX1, -1.21% gained 1.8% to 4,298.70.

Data: The flash eurozone composite purchasing manager’s index showed economic activity in the currency union slowed for a second straight month in February. The index fell to 52.7 from 53.6 in January, marking a 13-month low.