LONDON - European stocks tentatively rose and Wall Street was little-changed Tuesday as investors adopted a wait-and-see approach on the eve of a US interest rate decision and oil prices weakened.

London increased 0.3 percent as dealers also awaited Wednesday's British economic growth data and a Bank of England interest rate call next week.

Frankfurt stocks gained 0.4 percent after solid gains the previous day on bright German business confidence.

And Paris cautiously regained ground after earlier losses when, analysts said, sentiment was partly hit by news of a church hostage taking in France, dealers said. By mid afternoon the CAC 40 was slightly up.

The Islamic State group said two of its "soldiers" attacked the church in the Normandy town of Saint-Etienne-du-Rouvray, slitting a priest's throat. Five people including the priest were taken hostage before police shot dead the two attackers, officials said.

"The market is in a waiting mode ahead of the Fed," said Xavier de Villepion, equity salesman at HPC in Paris. "There is also a raft of company results, and those published so far have been of high quality overall."

In foreign exchange, the European single currency clambered above the dollar as participants awaited the Fed.

The US central bank, which concludes its latest meeting on Wednesday, is not expected to make any big announcement.

However, its accompanying statement will be pored over for clues about policy following a run of strong data that have fanned talk of a rate hike.

Traders also eyed Wednesday's first estimate of British second-quarter gross domestic product (GDP), before the BoE decision due on August 4.

The BoE -- which this month decided to keep its rates fixed at 0.50 percent where they have stood since March 2009 -- has already signalled a possible cut in response to Brexit.

- 'Jittery kind of dullness' -

"The markets have settled into a jittery kind of dullness," noted Spreadex analyst Connor Campbell, in reference to Tuesday's trade.

"I think it's just pre-Fed jitters, pre-UK GDP jitters, pre-BoE next week jitters," he told AFP.

The pound dipped after BoE policymaker Martin Weale told the Financial Times newspaper that recent poor data has persuaded him to vote in favour of stimulus.

Meanwhile, Europe's energy sector faced fresh selling pressure Tuesday as oil prices struck new three-month lows on supply glut concerns.

BP's share price fell 1.9 percent, hit also by disappointing second-quarter results.

Commodities analysts at Capital Economics said that after "a good few months" for prices, the coming months may be "much tougher".

"In particular, commodities are vulnerable to a resumption of Fed tightening and renewed strength in the US dollar.

"The next leg up in oil prices may have to wait, although we continue to expect Brent and WTI to recover further (to $60pb) in 2017," they wrote in a note for investors.

In Asia, most markets rose but Tokyo sank on a strong yen as traders also awaited this Friday's Bank of Japan gathering.

The BoJ is thought to be preparing to widen its broad monetary easing programme, a prospect which sent the yen tumbling and the Nikkei index soaring this month.

However, the two reversed course Tuesday with the drop in oil prices also hitting confidence.