The share market remains lower but has recovered some of its earlier losses as disappointing retail spending figures stoked hopes of another interest rate cut.

Retail spending in April was flat from March, the weakest reading since February 2014.

Phillip Capital senior client adviser Michael Heffernan said investors may interpret the figures as another reason for the Reserve Bank to deliver another rate cut.

“That seems to be the pattern – looking through the prism of interest rates,” he said.

“If some economic data is bad, that means that interest rates might fall, hence that might be the reason why we’ve clawed back quite a bit.”

The benchmark S&P/ASX200 index was 0.4 per cent weaker at noon (AEST), after dropping more than 0.6 per cent in early trade.

The market’s generally downbeat mood appeared to be continuing, in defiance of a more positive mood on overseas markets, Mr Heffernan said.

Among the major lenders, Commonwealth Bank was down 28 cents at $81.29, ANZ had lost 23 cents to $31.69, Westpac was 26 cents weaker at $31.62 and National Australia Bank had shed 20 cents to $32.80.

BHP Billiton was off 27 cents at $28.26, Rio Tinto had dumped 50 cents to $57.00 and Fortescue Metals was five cents weaker at $2.38.

Grocery retailer Metcash had slumped 22.75 cents, or 16.4 per cent, to a 14-year low of $1.1575 after announcing $640 million in writedowns and impairments, and an end to dividends.

Logistics firm Qube was down 13.5 cents, or 4.9 per cent, at $2.635 after warning it was facing tough trading conditions.

KEY FACTS

* At 1207 AEST on Thursday, the benchmark S&P/ASX200 index was down 24 points, or 0.43 per cent, at 5,559.6 points.

* The broader All Ordinaries index was down 23.4 points, or 0.42 per cent, at 5,564.9 points.

* The June share price index futures contract was down 29 points at 5,560 points, with 20,212 contracts traded.

* National turnover was 738 million securities worth $1.9 billion.