Aust stocks open flat

Local market begins little changed as world awaits outcome of US budget showdown.

The Australian stock market opened flat following falls on Wall Street as a partial US government shutdown looms due to Washington political gridlock over a new budget.

At the 1015 AEST official market open, the benchmark S&P/ASX200 index was 0.07% higher at to 5,222.7 points, while the broader All Ordinaries index edged up 0.06% to 5,220.9 points.

IG markets analyst Evan Lucas said the ongoing US showdown over the budget was likely to have less of an impact on the local market than the release of official manufacturing data out of China.

"This will be the most influential read today and will be the barometer for cyclical trading," he said.

"It is unlikely to be contractionary, however it could be a soft expansion number and that would be a negative on the whole cyclical space."

In economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and makes its interest rate decision. It also releases the index of commodity prices for September.

The Australian Bureau of Statistics (ABS) is due to release retail trade for August.

The Australian Industry Group performance of manufacturing (PMI) index for September was released and showed activity in the sector expanded for the first time since June 2011.

No major equities news is expected.

In Australia, the market suffered its heaviest daily fall in almost two months as nervous investors sold out due to a political impasse in the United States.

Despite that, Tracy Warren of CMC Markets noted Australian shares "have had a stellar end to the quarter despite a nervous market with the ASX 200 closing up 8.7% for the quarter."

The benchmark S&P/ASX200 index was down 88.2 points, or 1.66%, to 5,218.9 points.

The broader All Ordinaries index lost 84.6 points, or 1.6%, to 5,217.7.

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