Early gains erased in Aussie trading

The Australian sharemarket erased early gains to finish 0.3 per cent weaker at the lowest in 11 months amid lower Asian markets.

But takeover offers for Centennial Coal and CSR's sugar business prompted some stocks to gain.

The benchmark S&P/ASX200 index was down 16.6 points, or 0.39 per cent, at 4222.1, while the broader All Ordinaries index slipped 14.3 points, or 0.34 per cent, to 4250.6, the lowest since July 31 last year.

On the Sydney Futures Exchange, the September futures contract was 37 points lower at 4206 points, on volume of 19,294 contracts.

Macquarie Private Wealth division director Lucinda Chan said the bourse shed early gains after the Hang Seng and Shanghai markets started trading lower on Monday. "What held the market up better than I thought was the merger and acquisition activity this morning for Centennial and CSR.

"Not having US guidance tonight, the market was travelling on its own with Asia softer. We've also turned down by the afternoon, despite the fact that we've had some good base metal prices and some good amendments coming through for the resources profit tax."

Chan said the general market malaise was the result of lacklustre economic data from the US which was discouraging investor expectations over the strength of the global recovery.

Local investors are also awaiting the Reserve Bank of Australia's interest rate decision today and unemployment data on Thursday.

- AAP