The S&P/ASX200 is down 0.3 per cent as resources stocks including BHP Billiton, Rio Tinto, Fortescue and Oil Search are down 1.2 per cent to 2.7 per cent on commodity weakness and with ex-dividend falls today worth about 11 index points.
Strength in high-yield and defensive stocks is limiting the decline, with ANZ, NAB, Wesfarmers, CSL, Westfield, QBE, Macquarie and Goodman Group up 0.4 per cent to 1.1 per cent.
"Investors are now likely to stand back and assess the extent of any impact that fiscal tightening in the US and the Italian election result have on world economic growth over coming months," CMC Markets chief market analyst Ric Spooner said.
He expects the Reserve Bank of Australia to be in a wait-and-see mode, leaving interest rates unchanged at tomorrow's board meeting.
On a technical basis, CMC's Mr Spooner cautions that the S&P/ASX200 is in the early stages of a possible double top pattern.
