Thin trading volumes and weak economic data saw the Australian share market ease today, with both major indices shedding 1.2pct. The All Ordinaries Index (XAO) fell 52.6pts to 4563 while the S&P/ASX 200 Index (XJO) was off 54.2pts to 4540.7.

The financial sector shed 1.2pct as investors reacted to the NAB's trading update and awaited FY results from the Commonwealth Bank (CBA) tomorrow. Shares in the NAB fell 2.2pct to $24.50 despite the lender posting a 22pct rise in 3Q cash earnings to $1.1 billion, in line with guidance. The CBA fell 0.6pct to $52.75. Shares in Westpac (WBC) eased by 2.2pct to $23.28 while the ANZ (ANZ) was down 2pct to $22.63. Macquarie Group (MQG) was lower by1.8pct to $39.58.

Index leader BHP Billiton (BHP) fell 2pct to $40.73 despite generally firmer commodity prices. Rio Tinto (RIO) was off 1.9pct to $72.60 while Fortescue Metals Group (FMG) was lower by 0.7pct to $4.59. Alumina (AWC) closed down 0.6pct to $1.63 in the wake of its 1H result.

The energy sector fell 1.2pct despite a firmer oil price.

Among other companies reporting today, Bradken (BKN) fell 1.8pct to $7.79 while Cochlear (COH) was off 2pct to $69.86.

Business confidence hit a 14-month low in July according to the NAB business survey. The business confidence index fell from +3.9 in June to +2.4 in July. Business conditions weakened also. The business conditions index fell from +8.0 in June to +5.3 in July. The key forward orders index hit a 14-month low of -7.7 in July. A record 53pct of businesses say that they don't require any borrowings.

In other economic data released today, China recorded a trade surplus of US$28.7 billion in July, above forecasts centred on a result near US$19 billion. Exports were up 38.1pct on a year ago (consensus +35.5 per cent) and imports were up 22.7pct (consensus +30.0 per cent). Urban property prices in China rose by 10.3pct in the year to July, down from 11.4pct in the year to June and the 12.8pct peak in April.

On the market overall, a total of 2.17 billion shares were traded, worth $5.89 billion. 391 were up, 645 were down and 367 were unchanged.

At 4.15pm AEST on the Sydney Futures Exchange, the Share Price Index (SPI) futures contract was at 4510, down 49pts.

Ahead tonight, the US Federal Reserve kicks off its two day policy meeting. Walt Disney will release earnings after the bell.