Australian stocks have opened slightly higher following positive leads from European markets.

CMC chief market analyst Ric Spooner said the market had taken its cue from official figures which showed manufacturing activity expanded in the UK and the euro zone in August.

The figures followed better than expected Chinese manufacturing figures and saw European stock markets rally.

“The main thing is this has been a relatively positive set of manufacturing figures from Europe over night,” Mr Spooner said.

But Mr Spooner said it had been a relatively quiet start to trading as investors waited for the release of official Australian retail sales figures for July.

“Investors are waiting to see what happens with retail sales figures at 1130 (AEST),” he said.

He said the market was also a bit subdued due to the lack of a lead from US markets, due to the Labour Day public holiday.

Mr Spooner said the Reserve Bank of Australia’s monthly interest rate decision at 1430 AEST on Tuesday was unlikely to have much of an impact on the market, because the central bank is widely expected to keep the cash rate on hold.

Among the major banks at 1020 AEST, the National Australia Bank was up 19 cents at $33.04, ANZ rose five cents to $30.05, Westpac climbed 16 cents to $31.98, and the Commonwealth Bank gained 19 cents at $73.87.

In the resources sector, global miner BHP Billiton was 40 cents higher at $36.02, while Rio Tinto lifted $1.08 to $60.30.

KEY FACTS

* At 1020 AEST on Tuesday, the benchmark S&P/ASX200 index was up 13.9 points, or 0.28 per cent, at 5,202.2 points.

* The broader All Ordinaries index was 14.6 points, or 0.28 per cent, higher at 5,192.6 points.

* The September share price index futures contract was 14 points higher at 5,197 points, with 6,390 contracts traded.

* At 1036 AEST, national turnover was 287 million securities worth $446 million.