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Global stock markets steadied Wednesday as investors remained cautious ahead of the Federal Reserve's latest cues on interest rates.

The Stoxx Europe 600 was up 0.2% in early trade after Tuesday's losses.

While the U.S. central bank is widely expected to leave short-term interest rates near zero as it concludes its two-day policy meeting on Wednesday, its policy statement will be closely scrutinized for hints of future action.

"The onus is on the Fed to be upbeat," said Brenda Kelly, head analyst at London Capital Group. "At this point, a failure to make good on clear action and timing of the rate hike is likely to be to the detriment of risk assets," she said.

Asian markets were mixed as a decline in oil prices and Wall Street shares added to investors' nerves. Hong Kong's Hang Seng Index was down 0.8% and the Shanghai Composite lost 1.7%.

Japan's Nikkei Stock Average rose 0.7% amid expectations that the Bank of Japan will introduce more easing at its meeting later in the week.

In September, the Fed left short-term rates unchanged amid worries about weak growth overseas and concerns that inflation could remain stuck at exceptionally low levels. Markets have rallied this month on hopes that the Fed would keep rates lower for longer, while the prospect of further stimulus from central banks in Europe and Asia has fueled gains.

Elsewhere, company earnings continue to be in focus after Apple Inc. reported a rise quarterly profit. Shares of Apple rose in after-hours trading immediately following the release, but later pulled back.

Volkswagen AG shares rose 1.7% after the German car maker posted a widely anticipated third-quarter loss in the wake of an emissions-cheating scandal.

In commodities, Brent crude oil was down 0.1% at $46.76 a barrel after oil prices slid to two-month lows on Tuesday.

Gold was 0.4% higher at $1,171.00 a troy ounce.

The euro was last up slightly against the dollar at $1.1045, while the dollar was steady against the yen at ¥ 120.42.

Write to Riva Gold at riva.gold@wsj.com

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(END) Dow Jones Newswires

October 28, 2015 05:25 ET (09:25 GMT)

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