KUALA LUMPUR (Oct 20): The FBM KLCI is expected to trend cautiously today but defend its 1,700-point level in line with the softer overnight close at most global markets on the back of news of slowing economic growth in China.

With the third quarter earnings season in full swing, investors are looking for external leads and thus far it has been less than encouraging.

Domestic investors are also keeping a watch on what is set to be unveiled by Prime Minister as measures to boost the market when he tables Budget 2016 this Friday.

The U.S. dollar rose against the euro on Monday, ahead of a European Central Bank meeting later this week, while stocks on major world markets ended little changed despite further news of slowing Chinese economic growth, according to Reuters.

U.S. stocks ended little changed but investors concern about the poor quality of third quarter earnings reports, it said.

Even the much touted investment by Value Cap Sdn Bhd to boost the local equity market has not yet kicked off in full swing, leaving market participants awaiting what is next.

Expectations are running high that Budget 2016 would include measures that would give the local equity market a much needed short-in-the-arm.