European Markets Show Steadiness Ahead of Fed Decision

European markets showed signs of steadiness on the eve of the Federal Reserve's crucial policy meeting. Oil prices and bond yields retreated, providing a brief respite for investors before the Fed decision that is set to shape the market's direction.

Brent crude oil dropped 1.4% to $107.20, while WTI crude declined by over 2% to $103.35. Meanwhile, US 10-year Treasury yields eased slightly to 4.983%. The dollar held relatively steady, with no significant changes in major currencies.

The modest retreat in oil prices and bond yields appears more like a positioning adjustment ahead of the Fed decision rather than a fundamental reassessment. This sentiment is reinforced by the fact that oil remains above $100 and 10-year yields are hovering near the 5% mark.