U.S. stock futures were steady and oil edged lower in early European trade as market sentiment stabilized ahead of the Federal Reserve's policy rate decision later Wednesday.

Markets are near-certain the Fed will raise rates, with a 91% expectation for a quarter-point hike, according to LSEG. As well as the decision, any remarks from Chair Kevin Warsh will be closely watched for signals on the Fed's forward path, although he has previously steered away from giving guidance.

"Markets are somewhat sitting on the fence until we see the Federal Open Markets Committee's statement and press conference," said Jonathan Pryor, co-head of FX dealing at Marex.

Treasurys strengthened slightly, though yields remained elevated near multiyear highs. Yields on 10-year Treasurys held above 5%, while 30-year yields traded around 5.370%. Yields moved in step with the oil prices, as front-month Brent crude contracts slipped by more than 1% to trade around $107.50 a barrel.

The slight fall in prices came after the U.S. added 7.1 million barrels to its stockpiles last week, easing supply concerns. However, the closure of Saudi Arabia's East-West pipeline and the threat to shipping and infrastructure from Iran-backed Houthi militants continued to cloud the outlook for Gulf supply.

U.S. stocks showed signs of recovery in the European morning. Futures for the Dow Jones Industrial Average were flat, after the energy-sensitive index recorded its worst start to September since 2008. S&P 500 futures added 0.15%.

Nasdaq futures added 97 points or 0.3%. Chip stocks made modest gains in premarket trade, with Nvidia adding 0.7% while Micron Technology gained 1%. Intel shares jumped over 5% premarket after Reuters reported the company was in talks with Korean chip maker SK Hynix to manufacture memory chips in the U.S.

Asian stocks broadly gained. South Korea's Kospi index jumped 1.4%, while Hong Kong's Hang Seng index edged up 0.2%. Japan's Nikkei 225 rose 0.8%. Stocks in Europe also strengthened, with the continent-wide Stoxx 600 rising 0.4%.

Precious metal prices rose as the dollar slipped slightly ahead of the Fed decision. Bitcoin failed to recover losses from the last session after the crypto-friendly Clarity Act failed to progress in the Senate. Bitcoin was flat around $75,660.

For the day ahead, the Fed rate decision will be squarely in focus. Markets will also react to Ursula von der Leyen's State of the Union address this morning, with the commission confirming the EU's willingness to make Canada an associate member of the bloc.