Australian stocks have turned flat, with resources stocks pulling equity values higher but the rest of the market dragging it down.
At 10.15am today, the benchmark S&P/ASX200 index was up one point, or 0.02 per cent, at 4326.8 points, while the broader All Ordinaries index had risen 1.7 points, or 0.04 per cent to 4350.5 points.
On the ASX 24, the September share price index futures contract was one point weaker at 4330 points, with 12,692 contracts traded.
Gold stocks were the market's best-performing sector midday, having risen 3.4 per cent. Materials and mining stocks were also up more than two per cent, according to IRESS data.
The strong performance of resources stocks was related to Friday's stimulus announcement by China of $160 billion in infrastructure spending and government statements that it would act to maintain steady growth.
It came after many mining stocks last week were punished as iron ore prices plummeted.
"I think there is some correcting in the short term due to some excessive negative valuations of iron ore stocks," CMC Markets chief market analyst Ric Spooner told AAP.
"There had been queries about whether China would step up to the plate again for this sort of stimulus and it seems to indicate there is an intention to do so."
Also, contract prices of key commodities such as gold, copper and oil also rose in US trading.
Locally, Rio Tinto rose 3.7 per cent or $1.90, to $54.28, while BHP Billiton was up 45 cents, or 1.4 per cent, at $32.43.
Fortescue Metals was 11.5 cents, or 3.5 per cent, better, at $3.425, continuing its recovery after some heavy losses for most of last week.
However, the rest of the market's sector indices were trading in negative territory, amid worries about Europe, including a legal battle in Germany about the constitutional validity of the European bailout.
A negative decision could mean Germany would not participate or contribute to a new stability fund, thus significantly reducing the amount of money that could be lent to countries such as Italy and Spain.Locally, among the banks, ANZ was up one cent at $24.17, Commonwealth Bank had slipped 11 cents to $54.49, National Australia Bank had found one cent at $25.07 and Westpac had backpedalled 4.5 cents to $23.655.
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