At 10.10am (AEDT) on Tuesday, the benchmark S&P/ASX200 index was down 4.1 points, or 0.08 per cent, at 5,039.5, while the broader All Ordinaries index was down 3.8 points, or 0.07 per cent, at 5,090.5.

On the ASX 24, the share price futures index was down nine points at 4,993, with 10,562 contracts traded.

At 8.30am (AEDT) on Tuesday, the share price futures index was down one point at 5,001.

In local economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and announces its interest rate decision.

The ANZ-Roy Morgan weekly consumer confidence survey and the Dun and Bradstreet business expectations survey are both due out.

In equities news, Navitas is expected to post half year results, while Bitcoin Group is slated to list on the ASX.At 6.45am (AEDT) on Tuesday, the share price futures index was down three points at 4,999.

China data showed that the world’s second-largest economy’s manufacturing sector contracted in January at the fastest pace since 2012.

Oil prices fell about six per cent after the China data added to worries about demand and an OPEC source played down talk of an emergency meeting to stem the decline.

In local economic news on Tuesday, the Reserve Bank of Australia holds its monthly board meeting and announces its interest rate decision.

The ANZ-Roy Morgan weekly consumer confidence survey and the Dun and Bradstreet business expectations survey are both due out.

In equities news, Navitas is expected to post half year results, while Bitcoin Group is slated to list on the ASX.

In Australia, the market on Monday ended the trading session higher, buoyed by gains across the board.

The benchmark S&P/ASX200 index was up 38.1 points, or 0.8 per cent, at 5043.6 points.

The broader All Ordinaries index was up 37.7 points, or 0.8 per cent, at 5,094.3 points.

Key overseas financial markers

The Dow Jones Industrial Average is DOWN 43.08 points at 16,423.22 in afternoon trading in New York, while the Standard & Poor’s 500 index is DOWN 6.46 points at 1,933.78.

The NASDAQ Composite index is DOWN 2.25 points at 4,611.70.

The Australian dollar is trading at 70.99 US cents, UP from 70.77 at Monday’s close.

The local currency is worth 85.98 Japanese yen, 65.13 euro cents, 49.20 British pence and 1.0886 New Zealand dollars.

Benchmark crude oil is DOWN $US1.86 at $US31.76 per barrel.

The Australia market is set to open FLAT, with the SPI futures index DOWN three points at 4,999.

The benchmark S&P/ASX200 index on Monday GAINED 38.1 points, or 0.8 per cent, at 5043.6 points.

The broader All Ordinaries index ROSE 37.7 points, or 0.8 per cent, at 5,094.3 points.

The spot price of gold is $US1,128.05, UP from Monday’s close of $US1,122.20.

NEW YORK – US stocks have closed mixed, with the Dow and S&P 500 in negative territory, as weak Chinese economic data exacerbates concerns about a global slowdown and oil prices resume their slide.

China’s manufacturing sector contracted in January at the fastest pace since 2012, prompting oit prices to fall about six per cent adding to worries about demand and an OPEC source played down talk of an emergency meeting to stem the decline.

Adding to the cautious note, data showed that US consumer spending was unchanged in December and manufacturing activity continued to contract in January.

“The consumer spending numbers are a concern,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.

“We keep hearing that there is pent-up consumer demand that we are going to see down the line but we’ve seen little evidence of that.”

LONDON – Britain’s top equity index has retreated from three-week highs with commodity shares falling after a factory survey in China, a major consumer of metals and oils in the world, disappointed investors.

The latest survey showed activity in China’s manufacturing sector contracted at its fastest pace in almost three-and-a-half years in January, missing expectations and marking the sixth straight month of factory activity contraction.

“With a week heavy on both macro and corporate data, it’s all about PMI readings today and the manufacturing sector has not exactly given much to cheer about,” said Brenda Kelly, analyst at London Capital Group.

“The FTSE started well but has run out of steam at 6,100, led by the energy sector as oil … once again flounders.”

HONG KONG – Bank of Japan’s move to negative interest rates sent its bond yields to new lows and China’s contracting manufacturing sector helped Japan stocks to rise but other Asian markets to fall.

Australia and Japan led regional markets with gains of 0.8 and two per cent, respectively. Chinese stocks slipped 1.5 to 1.7 per cent after the weak data there.

Monday’s economic data from China added to worries about the world’s second-largest economy and increased calls for more policy easing from China. Growth slowed in both manufacturing and services in China.

“In the short term, the surprise move by Japan will be a catalyst for global equities, but it only underlines the weakness of the global economy and we need to see some strong economics data for a sustainable rally,” said Cliff Tan, head of global markets research with Bank of Tokyo-Mitsubishi UFJ.

WASHINGTON – US manufacturing activity contracted in January for a fourth straight month as factories grappled with a strong dollar and lower oil prices forced energy firms to further cut spending, but the pace of the decline appears to be slowing.

US consumer spending remained unchanged in December, but a jump in savings to a three-year high suggested consumption could rebound in the months ahead.

NEW YORK – Yahoo Inc Chief Executive Marissa Mayer is set to reveal cost-cutting plans that include slashing 15 per cent of its workforce, or roughly 1600 jobs, and closing several business units, the Wall Street Journal reports.

ENERGY

Oil prices have resumed their slide, thanks to weak economic data from China nd the US.

“China is the last standing consumer of oil outside of the US. The problem is that everyone is relying on them,” said Carl Larry, director of business development at Frost & Sullivan in Houston.

“As long as we keep in this scenario where China is the only real consumer to pick up the pace, we’re going to see moves lower every time China has an issue with their economy.”

PRECIOUS METALS

Gold has risen to a three-month high, extending its recent rally on worries about global economic growth and hopes for easier monetary policy after weak factory data in Asia and Europe.

China’s official measure of manufacturing in January fell to the lowest since mid-2012, while factory growth across the eurozone slowed.

“That China data was disappointing, very weak in both manufacturing and non-manufacturing, which coupled with the ongoing turmoil on global markets and uncertainties about growth going forwards have helped gold to get above the $US1,115/20 resistance level,” said Robin Bhar, head of metals research at Societe Generale in London.

Data also showed that US manufacturing activity was unlikely to recover in the near term, while consumer spending was flat in December.

BASE METALS

Copper has slipped alongside Chinese equities on news the country’s manufacturing sector shrank at the fastest in more than three years, reinforcing fears of weaker demand in the top consumer of industrial metals.

“After the Chinese PMI data it’s not surprising to see copper and other industrial metals and China equities under pressure,” said Commerzbank analyst Eugen Weinberg.

“The market is very much driven by sentiment at the moment, but we are likely to see more supply cuts this year, many mines are operating at unprofitable levels.”

ASX stocks to watch Tuesday, February 2

BCG – BITCION GROUP

Bitcoin Group is slated to list on the ASX on Tuesday.

BHP – BHP BILLITON

Ratings agency Standard& Poor’s has cut resources giant BHP Billiton’s credit rating by one notch.

NVT – NAVITAS

Navitas is expected to post half year results on Tuesday.

ORG – ORIGIN

OSH – OILSEARCH

STO – SANTOS

WPL – WOODSIDE PETROLEUM

Energy stocks could be in for another hit as oil prices resume their downwards path, with WTI losing more than six per cent and Brent losing 5.56 per cent.

AAP