MSCI’s global equities index added 0.35 per cent after dropping in the previous two sessions

Stocks edged higher on ​Wednesday, pulling back from two straight sessions of losses, as investors ⁠positioned for a US central bank interest-rate decision later in the day.

MSCI’s global equities index added 0.35 per cent after dropping in the previous two sessions.

Equities had come under pressure over the past two sessions as rising government bond yields and higher oil ‌prices fuelled concerns about inflation and the economic outlook.

Markets have also been pricing in a more than 90 per cent probability of a 25-basis-point increase when ‌the US central bank announces its decision, according to CME Group’s FedWatch tool.

On stock market, ⁠the benchmark S&P 500 and the Nasdaq were trading higher with technology ⁠and communication services stocks driving gains. The Dow was lower.

Energy stocks were the main drag on the day as oil prices pulled back from recent gains.

The Dow Jones Industrial Average dropped 0.18 per cent, the S&P 500 ​gained 0.26 per cent, and the Nasdaq ‌Composite added 0.60 per cent.

In Europe, the pan-European STOXX 600 gained 0.44 per cent. Britain’s FTSE 100 index rose 0.28 per cent while benchmarks in Germany, France and Spain also saw gains.

The market has been trading down into the Fed decision, which it typically does, because it is ‌discounting the uncertainty, said Gerry Sparrow, chief investment officer at Sparrow Capital Management.

My ​expectation is that since interest rates breached the 5 per cent handle or are bumping up against, that means that there’s inflation in the system. I think they’ll raise interests, Sparrow said.