Aust stocks set for soft open

Local market expected to begin week slightly lower as the US braces for a disruptive budget, debt showdown.

The Australian stock market looks set to open lower after Wall Street gave up much of the gains made on the Federal Reserve's no-taper decision to finish lower at its last session.

A building showdown in Washington over the United States budget and debt ceiling, which threatens to shut down the government at the end of the month, also cast a shadow on Wall Street trade.

At 0715 AEST, the September share price index futures contract was down 23 points at 5,246.

No major economic or equities news is expected on Monday.

In Australia, the market on Friday closed weaker, with traders unwilling to push stock prices beyond the five-year-plus highs they hit during the week.

The benchmark S&P/ASX200 index was down 18.8 points, or 0.36%, at 5,276.7.

The broader All Ordinaries index was down 17.8 points, or 0.34%, at 5,270.8.

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