The Australian market has closed around half a per cent lower, dragged down by weakness among the banks and industrial stocks. CMC Markets trader Ben Taylor said the local market finished in negative territory, following weak global leads.

The Australian share market has opened a third of a per cent higher. At 1010 AEST on Thursday, the benchmark S&P/ASX200 index was up 17.2 points, or 0.33 per cent, at 5,208.9, while the broader All Ordinaries index was up 15.8 points, or 0.31 per cent, at 5,191.8.

US stocks have slipped despite a flurry of merger and acquisition news this week. Investors are also looking ahead to Federal Reserve Chairman Ben Bernanke's testimony to Congress this week.

Shares in Santos closed 1.6 per cent higher after the company said oil production started ahead of schedule at its $490 million Fletcher Finucane project off the West Australian coast. Santos expects to produce 15,000 barrels daily in the first year of production.

Construction giant Leighton Holdings says it's not concerned about the recent woes of mining services companies due to its diverse business interests and cyclical nature of the industry.