The Australian stock market is off to a subdued trading Thursday as investors cautiously stay at the sidelines observing how China will try to ease its economic challenges that could have a direct impact Australia's economy.

As Australia's biggest trade partner, China's production and manufacturing index will be an important indicator if there is indeed some activity in the Asian economy, now considered as the world's second largest economy.

Analysts from IG Markets and CMC Markets are a bit pessimistic of the overnight leads from Europe and the U.S. with mixed turnouts on closing.

IG Markets strategist Stan Shamu says that the Dow Jones Industrial Average was down 0.4% at 13125. The S&P was 0.2% lower at 1403 and the NASDAQ rose a point to finish at 3075.

"The slightly disappointing Home Sales data did not make a significant negative impact in the US equities market. This lower than expected figure did not dampen the belief that the US Economy is on its way to recovery," notes Miguel Audencial, sales trader with CMC. Markets.

Analysts both agree that the suprise decline of crude oil inventories resulted to a surge in oil prices to $107 a barrel in the futures market set for May delivery.

Expectations of a lower market turnout ranging from 4243 to 4244 loom in the open. China's PMI estimates to be released by HSBC is a key event that could drive or drag the markets within the day.

ECONOMIC INDICATORS CHART FROM IG MARKETS:

Market

Price at 8:30am AEST

Change Since Australian Market Close

Percentage Change

AUD/USD

1.0459

-0.0031

-0.30%

ASX (cash)

4244

-10

-0.24%

US DOW (cash)

13131

-72

-0.55%

US S&P (cash)

1402.0

-6.0

-0.43%

UK FTSE (cash)

5882.0

-11

-0.19%

German DAX (cash)

7062.0

-19

-0.27%

Japan 225 (cash)

10058

-28

-0.28%

Rio Tinto Plc (London)

34.88

0.23

0.66%

BHP Billiton Plc (London)

19.49

-0.16

-0.81%

BHP Billiton Ltd. ADR (US) (AUD)

34.52

-0.18

-0.52%

US Light Crude Oil (May)

106.92

0.35

0.33%

Gold (spot)

1650.0

-2.0

-0.12%

Aluminium (London)

2209.00

-36

-1.60%

Copper (London)

8455.00

25

0.30%

Nickel (London)

18800.00

-250

-1.31%

Zinc (London)

2020.00

-15

-0.74%

RBA Cash Rate to be decreased by 25bp (Apr) (%)

19.00

0

0.00%

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday's close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.

Please contact IG Markets if you require market commentary or the latest dealing price.