European stocks rose on Wednesday after two declining sessions, as a modest pullback in oil prices and bond yields gave investors respite before the Federal Reserve's monetary policy decision. The STOXX 50 gained 0.6% and the STOXX 600 added 0.4%, reaching 636.81 points by 0705 GMT; Germany's DAX also rose 0.4%. Markets priced a 93% probability of a 25-basis-point increase in the fed funds rate after inflation concerns tied to the Iran conflict prompted investors to reassess rate expectations. Banks advanced, led by Standard Chartered, HSBC, BNP Paribas, Banco Santander and Barclays. Barratt Redrow rose nearly 8% despite reducing its fiscal 2027 home-completions target, after earlier trading showed a 5.1% gain. Marks & Spencer, SAP and L'Oréal declined.