Markets seen trading up with debt crisis averted

[SINGAPORE] Talks on raising the US debt ceiling were expected to drag on for another week but no further, said UBS Wealth Management regional chief investment officer Kelvin Tay at a press briefing yesterday.

Markets were likely to trade downwards in the short term if the debt crisis dragged on, and extreme volatility like an intraday drop of 2 per cent could be a buying opportunity, he said.

The Singapore equity market, meanwhile, is likely to stay in its current range for the rest of the year, with banks being the most attractive buy.