U.S. federal debt ceiling impasse still nowhere in sight

With a breakthrough in the U.S. federal debt ceiling impasse still nowhere in sight, key U.S. equity indices plunged between 1.6% and 2.6% last night. This would likely hit Asian stocks when trading resumes this morning.

Our Malaysian bourse will probably not be spared from the selling pressures too. The benchmark FBM KLCI is expected to retreat further, possibly testing its immediate support line of 1,550 ahead. Given the bearish underlying market tone, and couple with the thin news flows on the corporate scene, investors may not be in the mood to buy equities at this moment. One company that could see added interest today is Malaysia Airports, which is scheduled to announce its financial results for the Apr – Jun quarter in the early afternoon.