Stocks Steady Ahead of Central Bank Busy Week

World stocks and the dollar were broadly steady on Monday as a busy week of central bank meetings and company updates began, while Japanese government bonds sold off before possible monetary policy tweaks.

Disappointing updates from U.S. tech heavyweights overshadowed solid results elsewhere, helping knock European shares off six-week highs, while a MSCI index that tracks shares in 47 countries .MIWD00000PUS pared losses to trade flat.

“Quarterly results continue to be more than good overall, but markets appear to be particularly sensitive to the sporadic negative updates, especially from tech stocks,” JCI Capital strategist and fund manager Alessandro Balsotti said.

“Meanwhile before the August lull – although that’s not always the case for markets – we’re bracing for an intense week, packed with central bank meetings and macro data,” he said.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza