European markets steady, oil and yields slip before Fed decision

Market overview:

Asset prices:

• Brent crude oil -1.4% to $107.20
• WTI crude oil -2.3% to $103.35
• US 10-year yields -1.2 bps to 4.983%
• US dollar little changed
• European stocks higher; S&P 500 futures +0.2%
• Gold +1.4% to $4,351
• Bitcoin up 0.1% to $75,951

Trading activity is largely subdued as markets await the Federal Reserve's rate decision later today.

European stocks traded mostly in a steadier fashion on Wednesday, with oil and bond prices cooling off. The moves gave investors some relief before the conclusion of the Fed's policy meeting.

Brent crude fell 1.4% to $107.20, while WTI crude declined more than 2% to $103.35. The 10-year Treasury yield also slid to 4.983% on the day, a drop of 1.2 basis points.

The pullback appears more driven by position-squaring ahead of the Fed than a fundamental shift in outlook, particularly given that oil remains above $100 and the 10-year yield is hovering just under 5%.

Elsewhere, the US dollar traded relatively flat, and major currencies showed little movement overall.

UK inflation data confirmed a rise in headline CPI for August, but core prices held steady. That is unlikely to alter the Bank of England's outlook ahead of its own decision on Thursday.

In other asset classes, European stocks edged higher, trimming some of the week's earlier losses. US futures also held slightly firmer, with the S&P 500 up 0.2% and the Nasdaq gaining 0.4%.

Gold climbed 1.4% to $4,351, and silver rose 1.9% to $64.85, posting a modest bounce ahead of US trading later in the session.

Still, the mood feels more like a pause than a major shift in sentiment. The Fed's decision and the subsequent press conference later in the day remain the key event for markets, potentially setting the tone for the rest of the week.