Australian market set to open lower

AUSTRALIAN shares look set to open sharply lower after US and European markets tumbled following weak Chinese industrial data.

NEW YORK, NY - SEPTEMBER 28: A trader works on the floor of the New York Stock Exchange during the afternoon of September 28, 2015 in New York City. Stocks plunged nearly 300 points today, closing at just above 16,000. Andrew Burton/Getty Images/AFP == FOR NEWSPAPERS, INTERNET, TELCOS & TELEVISION USE ONLY ==

AUSTRALIAN shares look set to open sharply lower after US and European markets tumbled following weak Chinese industrial data that added further evidence the world’s second biggest economy is slowing.

At 0645 AEST on Tuesday, the December share price index futures contract was DOWN 104 points at 5,002.

Government data showed China’s crucial industrial companies saw profits fall 8.8 per cent in August from a year ago — hit by August’s shock yuan devaluation, weak demand and plunging share prices.

In local economic news on Tuesday, the ANZ-Roy Morgan weekly consumer confidence survey is due out.

In equities news, Kathmandu is expected to post its full year results, while Metcash has an investor briefing.

In Australia, the market on Monday lifted more than one per cent on the back of a strong performance by the banks and a big merger in the telco sector.

The benchmark S&P/ASX200 index was up 71.4 points, or 1.42 per cent, at 5,113.5 points.

The broader All Ordinaries index was up 68.4 points, or 1.35 per cent, at 5,145.1 points.