The local share market has reversed its morning losses to finish higher for a second day, if only slightly, as traders digested twin surveys showing consumer sentiment worsening but business conditions improving.
The benchmark S&P/ASX200 index on Tuesday was down by as much as 0.5 per cent before noon, but turned things around in the afternoon to finish 14.6 points higher at 7206.9, a gain of 0.2 per cent.
The broader All Ordinaries rose 15.1 points to 7402.9, also a gain of 0.2 per cent.
"The ASX200 has chopped sideways and looks as rudderless as ever," said Capital.com senior financial market analyst Kyle Rodda, adding that global markets might be "eerily still" ahead of the release of August US inflation data late on Wednesday, Australia time.
Mr Rodda described as "remarkable" the continuing divergence between Australian business conditions and consumer sentiment.
NAB's monthly business survey on Tuesday found business conditions improved in August, continuing a run of above-average showings despite the broader slowing in the economy.
“Business conditions remained resilient with an uptick in August,” said NAB chief economist Alan Oster.
“There was a notable rise in the employment index, which is well above the long-run average, suggesting labour demand has remained strong into the second half of the year.”
But the Westpac-Melbourne Institute consumer sentiment index slipped further in September, even as fears of continued rate hikes ease, with families still reporting their finances are under intense pressure.
“Sentiment has languished at deeply pessimistic levels for more than a year now," Westpac chief economist Bill Evans said.
"Since the survey began in 1974, the only comparable period of such sustained weakness was during the recession of the early 1990s, when even weaker levels held for more than two years."
Five of the ASX's 11 sectors finished lower and six finished higher.
The two biggest movers were the two commodity sectors, energy and mining, which went in different directions - energy falling 1.4 per cent, while mining advanced 0.9 per cent.
BHP added 1.2 per cent to $44.19, Fortescue climbed 1.7 per cent to $19.96, and Rio Tinto gained 1.5 per cent to $114.11.
In energy, Woodside dropped 1.5 per cent to $37.69, Santos fell 1.3 per cent to $7.72, and Geelong refinery owner Viva Energy Group retreated 7.3 per cent to a two-month low of $2.93.
The Big Four banks had a quiet day. NAB added 0.2 per cent to $29.11 and CBA edged 0.1 per cent higher at $102.11, while ANZ and Westpac were basically flat, at $25.27 and $21.56, respectively.
The Australian dollar was buying 64.27 US cents, from 64.39 US cents at Monday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Tuesday up 14.6 points, or 0.2 per cent, at 7206.9.
* The All Ordinaries gained 15.1 points, or 0.2 per cent, to 7402.9.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.27 US cents, from 64.39 US cents at Monday's ASX close
* 94.44 Japanese yen, from 94.09 Japanese yen
* 59.94 Euro cents, from 59.99 Euro cents
* 51.46 British pence, from 51.43 British pence
* 108.78 NZ cents, from 108.65 NZ cents
