Stocks flat amid bank drag

The ASX eked out minor gains with strength in Chinese steel futures helping offset concern about falls on Wall Street.

The information boards at the Australian Securities Exchange (ASX) in Sydney. (AAP Image/Craig Golding)

The local sharemarket has ended the session broadly flat as investors took note of Wall Street caution in the lead up to a much anticipated US Federal Reserve chair appointment.

The benchmark S&P/ASX200 rose 3.6 points, or 0.06 per cent, to 5897.6 points. The broader All Ordinaries index lifted 5.3 points, or 0.09 per cent, to 5962.5 points.

Short a definitive catalyst, investors were torn between the prevailing caution and strength in Chinese steel and iron ore futures trade, according to Ric Spooner of CMC Markets.

“I think there is a little bit of nervousness about the fact that US stocks fell quite sharply last night, certainly in relation to the sort of moves we’ve had over the last few weeks,” he said.

“It just gives the market a room for pause I think particularly as we’ve had such a good rally over as well ourselves so I think the market sees itself on hold to some extent.”

Mr Spooner said the market is waiting for US President Donald Trump’s Federal Reserve chair appointment as well as inflation data due out this week.

In financials, NAB edged down 0.09 per cent to $32.54. Commonwealth Bank ticked 0.04 per cent lower to $78.66. Westpac dipped 0.06 per cent to $33.39 and ANZ lost 0.23 per cent to $30.47.

Rio Tinto gained 0.19 per cent to $69.39 after a class action was filed in a Manhattan Court against the company and former executives Tom Albanese and Guy Elliott over the acquisition of Mozambique coking coal assets in 2011. Rio, Mr Albanese and Mr Elliott said they would defend the allegations. BHP rose 0.23 per cent to $26.55.

Telco Vocus plunged 3.93 per cent to $2.69 after chairman Vaughan Bowen apologised to shareholders for an “exceptionally intense” and “unpleasant period” over the last year.

The company reported a $1.46bn full-year loss in August.

NZ-based Fletcher Building entered a trading halt ahead of an announcement that may result in significant writedowns. Fletcher last traded at $7.22.

Mirvac gained 0.43 per cent to $2.33 after the company reaffirmed its guidance for earnings to grow by six to eight per cent for the financial year.

The Australian dollar was trading slightly higher at US78.12 cents at 4.54pm (AEDT).