The S&P/ASX 200 index opened flat and failed to gain momentum throughout the day.

US markets dipped overnight on news the country’s economy contracted in the fourth quarter and the news didn’t bode well for Australian shares.

After 10 consecutive days of gains, investors pulled back slightly to consolidate.

The technology and telecommunications sector advanced more than 0.2%, however, the gains were offset by losses in the industrials, basic materials and consumer services industries.

At the closing bell, the market slid 0.4% or 17.9 points to 4878.8 points.

Data released by the Housing Industry Association revealed an improvement in the housing market.

According to the HIA new home sales report, seasonally adjusted new home sales increased 6.2% in December and 3.3% over the December 2012 quarter.

Despite the price of metals jumping overnight, it was a relatively flat day for the miners.

Rivals BHP Billiton and Rio Tinto both lost ground.

BHP closed down 0.4% to $A37.48 while Rio fell 1.1% or 76c to $66.36.

Whitehaven Coal slumped 5.5% to $3.28 after flagging a first-half earnings drop in its quarterly report.

Shares in Aquarius Platinum also lost ground after investors reacted negatively to its quarterly report, with the company dipping 5.1% to 93.5c.

Elsewhere, Atlas Iron finished 2.6% lower at $1.48, while Fortescue Metals Group lost 1.1% to $4.68.

Gold companies were mixed, with OceanaGold Corporation adding 3.9% to $2.63 while Evolution Mining shed 1.9% to $1.55.

Shares in Perseus Mining had a good run, firming 5.4% to $1.95.

Meanwhile, Sundance Resources left investors feeling nervous after postponing tomorrow’s shareholder vote for Hanlong Mining’s proposed takeover of the company.

In a trading halt request earlier in the day, Sundance indicated it was seeking verification from Hanlong on whether China's National Development and Reform Commission had extended provisional approval for the transaction.