SYDNEY: The Australian sharemarket defied upbeat leads from Wall Street and opened largely flat, despite mining stocks rallying on the back of a surge in the iron ore price overnight.
At the 10.15am (AEST) official market open, the benchmark S & P/ASX200 index was 5.2 points, or 0.09 per cent, lower at 5,832.3 points, while the broader All Ordinaries index was down 4.3 points, or 0.07 per cent, at 5,808.5 points.
IG market strategist Stan Shamu said the overnight moves in iron ore would be a focal point for the local market during the session.
“The spot price added more than $3 to be $US54.04, iron ore futures yesterday rallied 2.7 per cent and have been a strong indicator of the direction and strength in the spot price,” he said.
“I expect a solid bounce in materials today, however, watch the futures for an insight into how the spot price is likely to close.”
Materials were the best performing sector, adding 1.26 per cent after a strong rally in the iron ore price overnight.
BHP Billiton surged 2.38 per cent to $30.99, while Rio Tinto lifted 2.16 per cent to $56.39.
