Aust stocks set to open higher

Local market expected to lift slightly despite weak Wall St lead on shutdown fears.

The Australian stock market looks set to open slightly higher despite falls on Wall Street as a partial US government shutdown loomed due to Washington political gridlock over a new budget.

At 0650 AEST, the September share price index futures contract was up seven points at 5,230.

In economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and makes its interest rate decision. It also releases the index of commodity prices for September.

The Australian Bureau of Statistics (ABS) is due to release retail trade for August while the Australian Industry Group performance of manufacturing (PMI) index for September is due out.

Also due out is the RP Data Rismark Home Value Index for August, the HIA New home sales data for August and the Dun and Bradstreet business expectations survey.

No major equities news is expected.

In Australia, the market suffered its heaviest daily fall in almost two months as nervous investors sold out due to a political impasse in the United States.

The benchmark S&P/ASX200 index was down 88.2 points, or 1.66%, to 5,218.9 points.

The broader All Ordinaries index lost 84.6 points, or 1.6%, to 5,217.7.