Australian share market tipped to open flat

THE share market is expected to open flat after US equities were little changed and in anticipation of the Reserve Bank of Australia (RBA) interest rate decision this week.

THE share market is expected to open flat after US equities were little changed and in anticipation of the Reserve Bank of Australia (RBA) interest rate decision this week.

US stocks mostly slipped on Friday after a weak consumer sentiment report offset positive news from computer maker Dell Inc and chipmaking giant Intel Corp.

The blue-chip Dow Jones Industrial Average lost 36.43 points or 0.38 per cent to 9544.20, ending an eight-day winning streak.

The tech-heavy Nasdaq composite climbed 1.04 points or 0.05 per cent to 2028.77 while the Standard & Poor's 500 index, a broad measure of the market, shed 2.05 points, or 0.20 per cent to 1028.93.

CommSec chief economist Craig James said investors would be cautious ahead of the RBA board meeting on Tuesday.

"That will see a bit more caution come into the market."

The central bank is expected to leave interest rates unchanged this week, but some economists have brought forward their expectations for the first rate hike to later this year.

Mr James said the local sharemarket was likely to open flat after a mixed lead from the US.

"We will be down a modest degree, something in the region of 10 to 15 points, but nothing too dramatic," Mr James said.

"The local sharemarket has come a long way in a short period of time and we might see some consolidation moving into the market.

"There was profit taking on the New York market on Friday, with the Dow Jones down, although the Nasdaq was slightly higher."

Mr James said higher oil and gold prices should help lift the local resources sector.

On the share market on Friday, the benchmark S&P/ASX200 closed up 38.8 points or 0.87 per cent at 4489.6, while the broader All Ordinaries added 37.8 points, or 0.85 per cent, at 4495.9, buoyed by financial stocks.

On the economic front, the Australian Bureau of Statistics issues the national accounts for the June quarter on Wednesday.

The national accounts are expected to show gross domestic product (GDP) grew by 0.7 per cent in the June quarter, according to the median of 14 economists surveyed by AAP.

In company news today, ANZ issues its second half market update and PaperlinX and Elders post their annual results. Metcash has its annual general meeting on Thursday.