Aust stocks set to open lower

Local market tipped for weak start as optimism of US debt deal subsides.

The Australian stock market looks set to open lower following falls on Wall Street as optimism of a deal being reached on the US debt ceiling ebbed.

At 0645 AEDT, the December share price index futures contract was down 19 points at 5,230.

The latest effort by House Republicans to offer a compromise to resolve an impasse over the federal budget and debt limit was rejected by the White House before any vote in the opposition-led lower chamber of Congress.

Locally, in economic news on Wednesday, the Westpac-Melbourne Institute Leading Indexes of Economic Activity is due out.

In equities news, Iluka Resources is expected to release its quarterly report, while CSL (CSL) and The Reject Shop (TRS) have annual general meetings scheduled.

In Australia, the market on Tuesday posted strong gains amid signs politicians in the United States may soon reach a deal over the US budget impasse and debt ceiling.

The benchmark S&P/ASX200 index gained 51.2 points, or 0.98%, to 5,259.1.

The broader All Ordinaries index added 52.7 points, or 1.01%, to 5,295.2.