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Shares open lower as wary investors eye US

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The Australian share market has opened lower, as the US political impasse over the debt ceiling goes down to the wire.

US politicians have until Friday (Australian time) to reach a deal to prevent a massive default on its debt obligations.

The situation has been heightened with the Columbus Day holiday across much of the US on Monday, with equity markets open, but bond markets shut.

IG markets analyst Evan Lucas says local shares are moving lower and are expected to stay in the red on Monday.

“We are four days away from the debt ceiling,” he said. “The nervousness is starting to appear.

“It is Columbus Day in the United States… politicians aren’t at work and that takes a day away from negotiations.”

Mr Lucas said local investors would keep a close eye on the release on Tuesday of the Reserve Bank of Australia’s September board meeting minutes.

They will also be watching Chinese year-on-year inflation figures later on Monday and their impact on Asian markets.

Economists expect China’s inflation to come in at 2.8 per cent, with the Chinese government to be untroubled by any figure below 3.5 per cent.

Locally, the big banks were lower with ANZ down 13 cents, or 0.4 per cent, at $31.16, CBA had shed 26 cents, or 0.36 per cent, to $72.06, NAB had dumped 10 cents, or 0.29 per cent, to $34.77 and Westpac had lost 10 cents, or 0.3 per cent, to $32.89.

Global miner BHP was flat at $35.13, while Rio Tinto, was 22 cents, or 0.36 per cent, lower at $61.36.

In equities news, the chief executive of insurance comparison business iSelect has resigned, less than four months after taking the company public.

ISelect shares were 5.5 cents higher at $1.32

Oz Minerals’ shares were 39.5 cents, or 8.9 per cent lower, at $4.01 after the company said it hadn’t achieved its expected production levels in gold and copper at its Malu open pit in South Australia.

KEY FACTS

* On Monday at 1040 AEDT, the benchmark S&P/ASX200 index was 23.0 points, or 0.44 per cent, lower at 5,207.9 points.

* The broader All Ordinaries index had lost 21.9 points, or 0.41 per cent, at 5,207.3 points.

* The December share price index futures contract was 31 points lower at 5,198 points, with 9,767 contracts traded.

* At 1055 AEDT, national turnover was 407 million securities worth $615 million.