Australian shares claw back early losses
Australian shares have clawed back their early losses to sit flat at midday.
The benchmark S&P/ASX200 index, which had been down as much as 0.33 per cent following a poor finish to the week on Wall Street and continued worries over potential US tariffs on Chinese goods, was 1.7 points, or 0.03 per cent, higher at 6,145.5 points at 1200 AEST on Monday.
The broader All Ordinaries was up 4.2 points, or 0.07 per cent, at 6,256.5.
The heavyweight financial sector was still a drag on the market, with the big four banks between 0.75 and 0.2 per cent lower, but the big miners rallied after positive economic data from China.
China’s annual consumer inflation accelerated to a higher-than-expected 2.3 per cent in August, its fastest pace since February.
Rio Tinto and BHP had been sharply lower despite iron ore staying steady and copper rising slightly, but Rio had roughly halved its losses and BHP had swung positive with a 0.2 per cent gain.
Shares in Explaurum jumped 48.7 per cent to 11.0 cents on news gold miner Ramelius Resources had made a takeover bid for the gold and base metals explorer.
National Australia Bank was the worst performing of the big banks after saying it had decided not to hike its mortgage rates despite its rivals doing so - sacrificing margins in the process.
Health stocks showed gains, with Primary Health Care rising 3.2 per cent to $2.90 after announcing the acquisition of seven clinics that will form the nucleus of a new day hospital division deriving non-Medicare revenue.
The Australian dollar continued its decline and was buying 71.02 US cents, down from 71.52 US cents on Friday.
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