Australian Stock Market Subdued; Investors Awaiting China's Economic Data

The Australian market was subdued from morning to mid-day at the start of this week as investors become cautious while awaiting key data regarding China's economy. Some investors took profits after recent market gains, contributing to the fall.

Shares in information technology, healthcare and consumer discretionary traded higher today. Shares in from commodities and mining sector remain weak. Financial and energy stocks received mixed reactions from the market.

Top miners Rio Tinto (RIO) and BHP Billiton (BHP) have fallen to 0.5 per cent and 0.8 per cent respectively.

The Australian market was set to open higher after the U.S. Wall Street reaches new heights due to positive bank earnings to offset profit warnings from the United Postal Service and Dreamliner aircraft woes of Boeing.

The September share price index futures contract as of 0700 AEST Monday increased by 14 points at 4,950. The Australian Bureau of Statistics is due to release May figures of lending finance and June sales figures of new motor vehicles.

Last July 13, the Australian market saw the resources sector boost shares higher despite losing ground due to the lowered expectations of China's finance minister for economic growth. The S&P/ASX200 index reached 5,000 points in the morning after the market followed Wall Street's positive trading.

The S&P/ASX200 index gained 8.2 points or 0.17 per cent to reach 4,973.9 points.

In today's trading, the Australian market is expected to open on a positive note following the modest gains it made last Friday. However, investors feel a key reading on China's economic growth could have an impact on market sentiment.

The Australian dollar remains weak against the U.S. dollar with 90.66 U.S. cents. The Aussie dollar is down to almost a full cent after Friday's local trading close. The local currency hovered below the 90-cent mark last July 13.

The Aussie dollar traded against the U.S. dollar at 89.98 U.S. cents due following reports of China's finance minister saying that Asia's largest economy is slowing down from a previous economic growth forecast of 7.5 per cent. Investors are awaiting China's GDP data today.