European Shares Rise Ahead of Fed Rate Decision Amid Oil Price Pause

European shares rose on Wednesday as oil prices paused ahead of the Federal Reserve's policy decision. The pan-European Stoxx 600 index gained 0.5% to 637.09 points, with major regional indexes also increasing.

Markets are pricing in a 93% probability of a 25-basis-point increase in US interest rates, according to the CME's FedWatch tool, the first rise under new Fed Chair Kevin Warsh.

Kathleen Brooks, research director at XTB, said 'Warsh has backed himself into a corner on rates, in our view.'

The European Central Bank raised rates for the second time this year last week, and markets still expect another 25 bp increase by year-end.