Stocks rise as oil falls, bonds steady ahead of Fed decision

Global stocks climbed on Wednesday as government bond yields and oil prices eased before the Federal Reserve's interest rate decision. The MSCI's global equities index rose 0.2 percent, following a decline over the previous two days. Asia-Pacific shares outside Japan gained 0.6 percent, ending a four-day losing streak. European markets also showed positive sentiment, with the STOXX 600 up 0.6 percent and major German, French, and Spanish benchmarks posting gains.

U.S. stock futures indicated a higher opening price following the S&P 500's lower close on Tuesday. The 10-year Treasury bond yield dipped to 4.97 percent from its 5 percent peak earlier in the day as it had risen above that level on Tuesday for the first time in three years, reaching its highest level since 2007. Fed Chair Kevin Warsh will provide insights on Fed policy during the 6:00 p.m. GMT (2 p.m. ET) decision announcement and subsequent press conference.

Fed credibility and guidance are key concerns as the central bank weighs a potential rate hike amid energy-driven inflation risks due to Middle East conflicts. Oil prices fell, with Brent crude futures dropping 1.5 percent to $107.1 a barrel after a 2.9 percent increase on Tuesday, as reports of Saudi Arabia offering more crude via Oman alleviated concerns about supply disruptions.

Digital assets, such as Bitcoin and Ether, continued their downward trend after a sharp sell-off the previous day, with Bitcoin inching up 0.1 percent to $75,954 after losing 4 percent on Tuesday and Ether remaining flat around $2,411 after a 6.3 percent decline the day before.