Aust stocks open lower

Local market declines in early trade after US PPI data surprised Wall Street.

The Australian sharemarket has opened lower following falls on Wall Street after a surprise lift in producer prices.

At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 index dropped 19.1 points, or 0.35%, to 5,477.4, while the broader All Ordinaries index shed 17.8 points, or 0.33%, to 5,458.1 points.

The US producer price index, an indicator of inflation, rose 0.6% in April, far above analysts' average estimate of a 0.2% rise.

In local economic news on Thursday, the Australian Bureau of Statistics releases April's new motor vehicle sales figures, while the HIA Trades report for the March quarter is also due out.

In Australia, the market on Wednesday closed flat, with gains by two of the big four banks offsetting falls by their two rivals caused by the payment of dividends.

The benchmark S&P/ASX200 index dropped 1.7 points, or 0.03%, to 5,496.5.

The broader All Ordinaries index shed 0.5 points, or 0.01%, to 5,475.9.

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