World stocks and the dollar were broadly steady yesterday 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 US tech heavyweights overshadowed solid results elsewhere, helping knock European shares off six-week highs, while a MSCI index that tracks shares in 47 countries pared losses to trade flat.

Yesterday, industrial heavyweight Caterpillar posted higher quarterly profit that beat market forecasts and upgraded the full-year profit outlook, citing robust global demand.

The encouraging update helped Dow futures rise, while Nasdaq and S&P futures remained under pressure from technology stocks.

Apple is also among the 140 S&P 500 companies that report results this week. The iPhone maker will be closely watched after disappointing results from Facebook and Twitter shook confidence in tech resilience.

JPMorgan reported relatively aggressive moves into “value” stocks – banks, in particular – and away from shares leveraged to economic growth.

In Europe, 70 companies on the pan-regional STOXX 600 benchmark are due to report their updates this week with figures from big banks, including BNP Paribas, Intesa Sanpaolo and Lloyds in the spotlight.

According to I/B/E/S data, second-quarter earnings of companies on the STOXX are expected to have risen 7.4 per cent.

Earnings for the S&P 500 are forecast to have risen 22.6 per cent with more than four out of five companies, which have already reported, beating analyst expectations. At 43 per cent, earnings beats in Europe have lagged those on Wall Street.

Away from earnings, the top focus will be three central bank meetings. Bank of Japan and the Bank of England will be eyed for possible policy tweaks, while the US Federal Reserve is unlikely to deliver surprises.

The Fed meets today and tomorrow and is expected to keep rates unchanged and reaffirm the outlook for further rate rises. The market is almost fully priced for a hike in September and leaning towards a further move before the end of the year.

On currency markets, the chance of a BoJ shift has sent the yen higher in the last week or so, leaving the dollar around 111.07 yen from this month’s 113.18 peak.

Against a basket of currencies, the dollar moved in tight ranges. It last traded at 94.541, having repeatedly failed to clear resistance around 95.652 this month.

The euro edged up to $1.1681 against the dollar, after the European Central Bank reaffirmed last week that rates would remain low through the summer of 2019.

In commodity markets, oil prices rose as investors remained cautious over the supply outlook, having gained nearly 5 per cent in price since the middle of July.

US crude added 132 cents to $70.01, while Brent rose 73 cents to $74.83 a barrel.

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