Aust stocks open lower

Local market shrugs off positive offshore leads after last night's budget release.

The Australian sharemarket has opened slightly lower after last night's release of the federal budget despite positive offshore leads as Wall Street printed fresh record highs.

At 10.16am (AEST) the S&P/ASX200 index fell 0.32 points, or 17.6%, to 5,480.6, while the broader All Ordinaries index lost 15.3 points, or 0.28%, to 5,460.1.

IG market strategist Evan Lucas said the budget handed down overnight wasn't as drastic as early leaks suggested.

"Some economists feared this budget would put a fiscal drag on to the economy of up to 0.69% of GDP," Mr Lucas said.

"This hasn’t eventuated with current modelling, seeing only a 0.3% drag.

"However, that’s not to say it won’t cut into growth over the coming budgets as the Coalition looks to return to surplus."

No major local economic news is expected following the federal budget's release last night.

In equities news, Commonwealth Bank posted its quarterly trading update and CSR released its full-year results.

In Australia, the market yesterday closed higher, led by big mining stocks, after markets in the United States lifted and investment bank JPMorgan expressed confidence in the resources sector.

The benchmark S&P/ASX200 index was up 49.8 points, or 0.91%, at 5,498.2 points.

The broader All Ordinaries index was up 46.4 points, or 0.85%, at 5,475.4 points.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles