The Australian share market has had mixed start to trade, with investors taking a cautious approach as the US heads for a likely federal government shutdown.
The market was in mildly positive territory shortly after the open, but by 1030 AEST had slipped back to be down slightly.
Shares dropped by 1.6 per cent on Monday when it became apparent a stand-off in US budget talks in Congress meant a temporary shutdown of the federal government was likely.
“We reacted yesterday, and given the US market had a reaction similar to ours, we’ve decided to await further developments,” CMC Markets analyst Ric Spooner said.
Aside from the government shutdown, which is likely to be confirmed once the 1400 AEST deadline passes, Mr Spooner said there were a number of potentially market moving events on Tuesday.
Retail trade figures for August will be published later in the morning, and the Reserve Bank of Australia’s monthly interest rate decision will be known at 1430 AEST.
Meanwhile, Japan is expected to announce a sales tax increase and fresh stimulus measures during Tuesday, and China will release official manufacturing figures.
“Any one of those things could be market moving,” he said.
Among the banks, ANZ was down 13.5 cents at $30.645, Commonwealth had gained 15 cents to $71.36, Westpac was down 26 cents to $32.47 and National Australia Bank was 21 cents lower at $34.11.
In resources, mining giant BHP Billiton had lost 8.5 cents to $35.655, Rio Tinto was 48 cents lower at $61.26 and Fortescue Metals had shed five cents to $4.70.
KEY FACTS
* At 1041 AEST on Tuesday, the benchmark S&P/ASX200 index had dropped 14.3 points, or 0.27 per cent, to 5,204.6.
* The broader All Ordinaries index was down 14.2 points, or 0.27 per cent, to 5,203.5.
* The December share price index futures contract was 18 points lower at 5,203, with 11,286 contracts traded.
* National turnover was 326.9 million securities worth $609 million.
