Wall Street fell after a report showed the glut of unsold homes rose to a 16-year high for July. Dow fell 57pts while S&P 500 lost 13pts. Financial stocks continued to be the hit as analysts in the US continued to downgrade the banking stocks. It is feared that the mortgage defaults may hurt the earnings of the banks.
With most of the banks in both Spore and Malaysia coming clean on their 'involvement' in the US mortgage market, at least investors here can breathe a sigh of relief. Nevertheless, this 'plague' has yet to hit the Asian shores, and I believe that it may hit it sooner or later. It would likely have some kind of an impact but I do not know what yet. Will keep a keen eye on any signs.
For the indices today, we see minor consolidation on both the STI and KLCI. STI would likely trade between 3,350-3,440 while KLCI to trade between 1,268-1,285.
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