LONDON—By Carolyn CohnWorld stocks edged up and the dollar was flat ahead of the outcome of the Federal Reserve’s policy meeting on Wednesday, while oil rose towards recent seven-year highs on tension between Russia and Ukraine. The Fed is due to update its policy plan at 1900 GMT after a two-day meeting. A first rate increase is seen in March and markets are already pricing in three more quarter-point increases by year-end. The MSCI world index rose 0.32 percent. U.S. equities were more upbeat, however, with U.S. S&P futures up 1.01 percent after the index lost 1.22 percent in the previous session. European shares climbed 1.47 percent and Britain’s FTSE 100 gained 1.38 percent. U.S. stocks posted their worst week since 2020 last week, and the MSCI index is on course for its biggest monthly drop since the COVID-19 pandemic hit markets in March 2020, though analysts at Goldman Sachs …