Aust stocks open flat

Local market begins little changed following mixed fates on global bourses.

The Australian stock market opened little changed after mixed performances on international markets.

At the 1015 AEDT official market open, the benchmark S&P/ASX200 index edged up 0.12% to 5,103.2 points, the broader All Ordinaries index pushed 0.13% to 5,120.8 points.

European markets were mixed but United States stocks closed more than half a per cent higher after Microsoft made a long-awaited announcement on a new chief executive and a handful of corporate results bested expectations.

Microsoft said founder Bill Gates was stepping down as chairman to become a technology adviser and Satya Nadella, head of its cloud-computing division, would succeed Steve Ballmer as chief executive.

In Australia, the market on Tuesday suffered its heaviest one day loss since August, with spooked investors reacting to a sharp fall in US manufacturing activity growth.

More than $28 billion was wiped from the market's value, as investors followed a negative lead from Wall Street, which had its worst session since June amid concerns about the US economy and emerging markets.

Local stocks were also impacted by the Reserve Bank's decision to leave interest rates unchanged, and its statement that rates would stay stable for some time, CommSec market analyst Steve Daghlian said.

The benchmark S&P/ASX200 index dropped 90.8 points, or 1.75%, to 5,097.1.

The broader All Ordinaries index shed 87.8 points, or 1.69%, to 5,114.1.

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