(Adds closing prices)
* FTSEurofirst 300 up 1 percent
* UCB, Heineken, GSK rally after results, Fiat down
* Meggitt sinks after profit warning
* Energy stocks extend gains as crude rallies
* Fed seen keeping rates unchanged
By Danilo Masoni and Alistair Smout
MILAN, Oct 28 (Reuters) - European shares ended higher on Wednesday as energy stocks rose on the back of a crude oil price rally, though many investors stayed cautious ahead of a U.S. Federal Reserve decision on interest rates.
The FTSEurofirst 300 closed up 1 percent, recouping entirely Tuesday's decline. The euro zone's blue-chip Euro STOXX 50 index rose 1.19 percent.
The Fed, which is expected to leave rates unchanged, will announce its decision at 1800 GMT.
It may struggle to convince sceptical investors it can tighten monetary policy before the end of the year in the face of slowing U.S. and global economies.
"I doubt (Fed chair Janet) Yellen would want to sound particularly aggressive. The latest data have been mediocre ... and more time is needed to evaluate how far China and emerging markets have stabilised," said Anthilia Capital Partners fund manager Giuseppe Sersale.
Energy stocks were the top sectoral gainer with a rise of 1.8 percent. Oil futures were up about 5 percent after the United States reported a crude inventory build that reversed bearish market expectations, extending gains from an earlier rally traders said was triggered by a big algorithmic trade.
Among standouts, Belgian pharmaceutical firm UCB rose 6 percent, the biggest gainer in the FTSEurofirst, after well-received results.
Brewer Heineken rose 4 percent after reporting sales in Europe and the Americas above expectations.
Carmaker Volkswagen rose 3.9 percent after announcing its first quarterly loss in at least 15 years, with traders expressing relief that the results were not worse after it was hit by an emissions test scandal.
"Investors are glad this is out of the way, which is why shares turned higher. Volkswagen's sales figures are holding up quite well, but we need to wait a couple of months to see the real fallout," Peregrine & Black sales trader Markus Huber said.
GlaxoSmithKline rose 3.8 percent after reporting better-than-expected earnings, helped by strong demand for HIV drugs and flu vaccines, which offset a further slide in sales of respiratory medicine.
Shares in Fiat Chrysler fell 2.2 percent after the carmaker unexpectedly booked pre-tax charges of 761 million euros for possible future recalls.
A quarter of STOXX Europe 600 companies have reported results, and 59 percent of those have beaten or met expectations, Thomson Reuters Starmine data showed.
On the STOXX Europe 600, Saipem rose 11 percent after it announced a cash call to help it to weather the oil service recession.
Dialog rebounded from declines this week after announcing disappointing figures on Monday. It provides chips for Apple, whose results beat expectations.
Sweden said it would expand its bond-buying programme, spurring an initial outperformance in Swedish blue chips . They later pared gains to end up 0.85 percent.
Expectations that the European Central Bank will expand its asset purchases in December, combined with a rate cut in China, helped the FTSEurofirst 300 to two-month highs at the end of last week.
Among losers, Meggitt fell 20 percent after a profit warning and British bank Lloyds dropped 4.4 percent after it took a further charge for mis-selling insurance and profits missed expectations.
Today's European research round-up (Editing by Louise Ireland and John Stonestreet)