Australian stocks have opened slower on the back of disappointing data out of the United States.
The market dropped 13.2 points, or 0.26 per cent, to 5,127.8 on Thursday morning.
IG markets analyst Stan Shamu said poor earnings results and weaker-than-expected inflation data from the US was dampening investors’ spirits.
“The market continues to unwind following weakness in the US,” he said.
He said the disappointing figures added to concerns that the US economy would stall as quantitative easing is wound back.
“There’s nothing to really encourage investors to push the market higher at these already elevated prices.”
As earnings season continues, the market would still be reacting to Wednesday’s postings from key market players like the Commonwealth Bank, he said.
Wesfarmers, the company that owns supermarket giant Coles, the Goodman Group and Platinum Asset Management are expected to announce full year results.
Meanwhile, wealth manager AMP posted a net profit of $393 million for the six months to June 30, up from $373 million in the same period in 2012.
Mr Shamu said the big four banks “failing to fire on all cylinders” was weakening overall trade.
Among the major banks, ANZ was down 5.5 cents at $30.09, Westpac lost 14 cents at $31.37, while NAB gained a cent at $31.33.
The Commonwealth Bank dropped 45 cents at $73.28 after posting an all-time record profit on Wednesday.
In the resources sector, BHP Billiton was up 24 cents at $37.14, while Rio Tinto fell six cents to $61.87.
Telstra was down 2.5 cents at $5.09.
KEY FACTS
* At 1017 AEST on Wednesday, the benchmark S&P/ASX200 index was down 13.5 points, or 0.26 per cent, at 5,143.9 points.
* The broader All Ordinaries index was down 13.2 points, or 0.26 per cent, at 5,127.8 points.
* The September share price index futures contract was 23 points lower at 5,097 points, with 8,082 contracts traded.
* National turnover was 277.3 million securities worth $885.1 million.
