The S&P/ASX 200 slipped 0.2% to close at 4959 on the back of declines in the consumer services, industrials and basic materials sectors.

Trading coincided with Prime Minister Julia Gillard’s call for a ballot for leadership of the Labor party, which she managed to hold on to.

The caucus was sparked by former Labor leader Simon Crean declaring Gillard could not win the election in six months with her party’s current opinion poll position.

The mining industry also offered some comment on the drama in the form of billionaire magnate Clive Palmer, who urged Gillard not to contest leadership today, saying she did not have the support of the public.

Mining stocks rebounded somewhat with BHP Billiton gaining 0.4% to $A33.49 and Rio Tinto adding 1.4% to close at $58.30.

Fortescue Metals Group lifted 2.9% to $3.91.

Overall trading, however, lacked a clear lead with political uncertainty in Canberra and mixed signals from overseas markets pulling at investors.

Wall Street ended a three-day losing streak overnight after the US Federal Reserve confirmed it would continue its bond buying program and investors seemed to have shaken off worries regarding the effect of Cyprus on the eurozone.

Encouraging economic data from China during the session included a report from Shanghai Securities News that the country’s “big five” banks were expected to increase profits by 12% and a Bloomberg survey noting a faster-than-expected expansion in China’s manufacturing.

Nickel companies were mixed, with Western Areas jumping 5.9% to $3.58 and Sirius Resources extending yesterday’s loss 2.9% to close at $4.08.

Mirabella Nickel also shed 4.5% to finish at 31c.

Notable gains from gold companies included PanAust picking up 4.2% to $2.50 and OceanaGold adding 2% to close at $2.52.

Hannans Reward and Sipa Resources requested trading halts today pending the release of announcements expected on Monday.