European shares snapped two days of losses as oil prices eased and the bond selloff slowed, with traders looking ahead to the Federal Reserve's interest-rate decision later today. The Stoxx 600 rose 0.4% at 8:20 a.m. in London. Bank shares outperformed after JPMorgan Chase & Co. forecast gains in third-quarter trading and investment-banking revenue.

Elsewhere, Soitec gained 11% after JPMorgan upgraded its rating on the French chip materials supplier to overweight and more than doubled its price target. European shares have struggled to gain traction since hitting a record in August as higher energy prices fanned inflation and growth concerns.

With traders assigning a 94% chance of a hike at the Fed meeting later today, attention will be on the policy outlook. "If we do get the hike, it will be important to see how the longer end of the bond market reacts to that," said Bill Dinning, chief investment officer at W1M Wealth Management. He sees a 5.5% yield on the ten-year Treasury as a level that would put pressure on stocks.

In other individual stocks, UK housebuilder Barratt Redrow Plc rose 6.8% after its full-year results beat expectations. UK gambling shares slipped after the Financial Times reported that officials are looking to raise taxes on slot machines. Entain Plc fell as much as 2.3%.