Aust stocks slip at noon

Local market slightly lower after opening flat despite US markets closing at record highs.

The local market edged slightly lower at noon, after opening flat despite United States markets closing at record highs in their previous trading session.

At 1205 AEST official market open, the S&P/ASX200 index slipped 0.25% to 5,103.8 points, while the broader All Ordinaries index lost 0.24% to 5,086.3 points.

IG markets analyst Evan Lucas said the announcement an election will be held one week ahead of the original date, on September 7, makes no difference to the market.

"What will increase volatility is the prospect of another hung parliament," Mr Lucas said.

"If this does eventuate on polling day, another three years of cautious trade could be on the cards, whoever wins, and the local economy really cannot handle this."

Financials posted losses as the big four banks weighed on the market.

Commonwealth Bank dropped 0.33% to $73.58, while ANZ Banking Group lost 0.58% to $29.745.

National Australia Bank shrank 0.19% to $31.11, while Westpac Banking Corporation edged down 0.13% to $31.42.

Investment bank Macquarie Group contracted 0.31% to $45.06.

In the insurance sector, QBE slipped 1.04% to $17.21, Insurance Australia Group lost 0.96% to $5.685 and Suncorp fell 0.4% to $12.54.

In economic news, Dun and Bradstreet puts out its business expectations survey, while the TD Securities/Melbourne Institute inflation gauge for July also is due out.

No major equities news is expected.

In Australia, the market on Friday hit its highest point in more than two months as good signs from the United States overshadowed weaker local economic forecasts from the federal government.

The S&P/ASX200 index posted its tenth consecutive day of gains, taking it above 5,100 points for the first time since May 22.

The benchmark S&P/ASX200 index was up 55.3 points, or 1.09%, at 5,116.8 points, while the broader All Ordinaries index was up 51.6 points, or 1.02%, to 5,098.7 points.

Related Articles