Commodities stocks help European shares to bounce back
* FTSEurofirst 300 index rises 1 pct
* Oil stocks recover after crude rises towards $31
* Siemens up as results beat forecast (Adds quotes, details)
By Danilo Masoni and Atul Prakash
MILAN, Jan 26 (Reuters) - European equities gained on Tuesday after early sharp losses, with commodity stocks rebounding after oil rose towards $31 on hopes of a deal to tackle a supply glut and metals prices gaining ground on speculative buying.
The STOXX Europe 600 Oil and Gas index rose 2.5 percent after oil prices rose on expectations that OPEC and non-OPEC producers may be edging closer to a deal. The Organization of the Petroleum Exporting Countries is making renewed calls for rival producers to cut supply alongside its members.
"Markets have recovered with a rise in oil prices and that indicates that the two are still strongly correlated. Today's reversal could be the first step towards a short-term improvement in equity prices," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
The European basic resources index rose more than 4 percent after copper and zinc prices hit multi-week peaks as speculators bought back short positions ahead of a holiday break in top metals consumer China.
Shares in Anglo American rose 11.7 percent, in line with a rally in the market and also after it reported that rough diamond sales improved significantly this year. Continuación...