Aust stocks open lower

Local market falls after mixed sessions on international bourses overnight.

The Australian stock market opened slightly lower following mixed performances on international bourses as Europe looks to be emerging from recession.

At 1020 AEST, the benchmark S&P/ASX200 index fell 0.27% to 5,143.4 points, while the broader All Ordinaries index lost 0.27% to 5,127.3 points.

IG analyst Stan Shamu said investors are likely to continue reacting to yesterday's earnings announcements.

"There will be plenty of attention on Commonwealth Bank after its quality results yesterday were not enough for it to keep rallying," Mr Shamu said.

"We feel traders taking profits hurt the stock yesterday and we might see a recovery today."

Mr Shamu also said resources stocks may have "an interesting session, particularly with iron ore continuing to push higher and gold enjoying a strong bounce".

Financials were mostly lower.

Commonwealth Bank fell 0.58% to $73.30, while ANZ Banking Group dropped 0.13% to $30.11.

National Australia Bank was flat at $31.32 and Westpac Banking Corporation lost 0.44% to $31.37.

Investment bank Macquarie Group fell 0.65% to $44.34.

In the insurance sector, QBE dropped 1.37% to $17.25, Insurance Australia Group lost 0.86% to $5.79 and Suncorp inched down 0.12% to $12.445.

In economic news, the Australian Bureau of Statistics is due to release Average Weekly Time Earnings data for the six months to May.

In Australia, the market yesterday closed flat after strong earnings reports from major companies failed to hearten investors.

The market was subdued despite market heavyweight Commonwealth Bank posting a record profit of $7.68 billion.

The benchmark S&P/ASX200 index dropped 0.3 points, or 0.01%, to 5157.4 points.

The broader All Ordinaries index shed 0.6 points, or 0.01%, to 5141 points.

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