European Stocks Bounce Back as Bond Selloff Eases Before Fed Decision

European shares rebounded from two days of losses as a selloff in bonds and oil prices eased ahead of the Federal Reserve's interest-rate decision on Wednesday. The Stoxx 600 index rose by 0.5% at the close in London, extending gains as Brent crude dropped to $105 a barrel.

The relief came as investors awaited the Fed's move, which is expected to have significant implications for global markets. A bond selloff had been weighing on stocks and oil prices had been high due to supply concerns.

Despite the rebound, analysts remain cautious about the outlook, citing ongoing economic uncertainty and inflationary pressures.