SYDNEY: Australian shares are set to open broadly flat on Wednesday as overseas markets offered no leads and any lift from rising base metals and oil prices may be offset by renewed euro zone debt worries after Portugal's rating was cut to junk status.
Stock index futures gained 0.2 percent to 4,599, a 0.9 point premium to the last close of the underlying index
The index eased 0.3 percent on Tuesday.
Mining shares may find support after copper closed up for a sixth straight day on Tuesday as supply threats in Chile and upbeat US data added fuel to the rally. ADRs of mining heavyweight BHP Billiton traded 0.3 percent above the stock's last Australian close.
But Europe's troubles may continue to weigh on the market, particularly banks, which rely on overseas markets for funding. European services growth slowed in June in the face of sluggish new orders and rising interest rates, while the outlook got more clouded after Moody's cut Portugal's rating to junk and warned of a need for a second bailout.
Qantas Airways and Virgin Australia may find further support after rival Tiger's Australian unit stopped selling domestic ticket in face of a domestic ban.
Overseas markets offered few leads after US stocks ended mostly flat in a thinly traded session on Tuesday.
New Zealand's benchmark NZX 50 index rose less than 0.1 percent in early trade.
COPYRIGHT REUTERS, 2011
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