Australian shares are trading sideways after worse-than-expected economic figures added to investor worries over the unresolved US-China trade war's effects on the world economy.

Market snapshot at 7:50am (AEST): ASX SPI futures -0.1pc at 6,724, ASX 200 (Monday's close) +0.3pc at 6,750

ASX SPI futures -0.1pc at 6,724, ASX 200 (Monday's close) +0.3pc at 6,750 AUD: 67.77 US cents, 54.50 British pence, 61.63 euro cents, 72.86 Japanese yen, $NZ1.08

AUD: 67.77 US cents, 54.50 British pence, 61.63 euro cents, 72.86 Japanese yen, $NZ1.08 US: Dow Jones +0.1pc at 26,958, S&P 500 flat at 2,992, Nasdaq -0.1pc at 8,112

US: Dow Jones +0.1pc at 26,958, S&P 500 flat at 2,992, Nasdaq -0.1pc at 8,112 Europe: FTSE 100 -0.3pc at 7,326, DAX -1pc at 12,342, CAC -1.1pc at 5,631, Euro Stoxx 50 -1pc at 3,537

Europe: FTSE 100 -0.3pc at 7,326, DAX -1pc at 12,342, CAC -1.1pc at 5,631, Euro Stoxx 50 -1pc at 3,537 Commodities: Brent crude +0.2pc at $US64.41/barrel, spot gold +0.4pc at $US1,523.44/ounce, iron ore +1.7pc at $US94.12/tonne

By 12:55pm (AEST), the ASX 200 was largely unchanged at 6,752 points.

The Australian dollar was steady at 67.72 US cents.

European stocks finished in the red, with London's FTSE losing 0.3 per cent and Germany's DAX falling sharply by 1 per cent.

European business activity slows down

Investor sentiment turned sour after the results of purchasing manager surveys across France, Germany and the euro zone came in significantly below expectations.

Overall, manufacturing in the euro zone fell to a more than six-year low while services grew at is slowest pace in eight months, according to data from IHS Markit's private survey.

In particular, German private sector activity shrank for the first time in six-and-a-half years, and its manufacturing recession deepened unexpectedly.

Its flash reading of Germany's PMI (purchasing managers' index) came in at 49.1 in September, down from 51.7 in the previous month.

Any number below 50 indicates contraction, while a result above that threshold points to expansion.

The manufacturing element was particularly weak, with a reading of 41.4 — the lowest gauge of German factory sentiment since the global financial crisis, more than a decade ago.

"Considering that Germany already contracted in the second quarter, today's numbers effectively increase the risk of another negative quarter in the third quarter, which by definition would constitute a technical recession," said Marios Hadjikyriacos, investment analyst at XM.

"It seems that the malaise in manufacturing — owed to trade and Brexit worries — has started to spread to the much larger services sector as well."

These downbeat survey results come less than two weeks after the European Central Bank cut its deposit rate to -0.5 per cent and pledged indefinite stimulus to revive the 19-country currency bloc's struggling economy.

Apple's tariff reprieve

In New York, the Dow Jones index rose by 0.1 per cent to 26,958 points

The benchmark S&P 500 and tech-heavy Nasdaq indices closed largely unchanged.

The trade war's calling One of the big losers of Donald Trump's trade war with Beijing is American tech companies that rely on Chinese manufacturers. Here's what that could mean for people in the market for a new phone. Read more Read more

Investors have been cautious about progress in Sino-US trade talks after a Chinese agriculture delegation cancelled a visit to Montana.

The news on Friday led to Wall Street's main indices posting their worst session in about two weeks.

"People are tentative and want to sit on the sidelines," said Michael O'Rourke, chief market strategist at JonesTrading.

"We're sitting here just below highs, and there's no urgent need to chase them unless they break out, and of course no-one wants to sell them either."

Weakness across US markets were partially offset by the stock market gains of Apple (+0.5pc).

The technology giant said on Monday (local time) that it would make new Mac Pro desktop computers at its Austin, Texas facility, following some relief on tariffs by the US Government.

US trade regulators, on Friday, approved 10 out of 15 requests for tariff exemptions filed by Apple — amid a broader reprieve on levies on computer parts.

Apple's requests for tariff exemptions were for components such as partially completed circuit boards.

"The new Mac Pro will include components designed, developed and manufactured by more than a dozen American companies for distribution to US customers," Apple said in a statement.

The move by US officials could make it easier for Apple to assemble devices in the United States by lowering the costs of importing parts.

ABC/Reuters