The Australian stock market is lower as fears of an escalation of the Ukraine conflict and a potential move by the US Federal Reserve to increase interest rates impacts the local exchange.
The market impact of reports Russia is massing troops on the Ukraine border has been heightened as it couples with anticipation the US central bank is signalling the beginning of its rate hiking cycle.
CMC chief market analyst Ric Spooner said differences of opinion about when the rate increase will occur have narrowed to a matter of months.
“The market appears to be making some adjustment for the likelihood we are about to see the Fed start to move on interest rates,” Mr Spooner said.
“This has created some downward momentum in stocks.”
Closer to home, Mr Spooner said most investors were holding fire until the full swing of earning season added further market clarity.
In resource stocks, BHP recovered earlier losses to gain seven cents to $38.08 but Fortescue fell four cents to $4.66 while Rio Tinto was trading flat at $65.33.
Mining services business Ausdrill sank 11 cents, or 10.33, to $0.955 after the company flagged another profit write-down and warned a recovery in the industry would likely be slower than expected.
The big four bankers were all lower. Commonwealth Bank dropped 51 cents to $81.55, NAB lost 27 cents to $34.42, ANZ fell 22 cents to $32.92 and Westpac slid 18 cents to $33.49.
Orica shares were 30 cents lower at $21.05 as the company unveiled plans to sell off or demerge its chemicals business.
And Wesfarmers was down 16 cents at $42.80 after announcing it had engaged former Victorian premier Jeff Kennett to mediate with suppliers.
KEY FACTS
* On Wednesday at 1200 AEST, the benchmark S&P/ASX200 index was down 17.7 points, or 0.32 per cent, at 5,500.9 points.
* The broader All Ordinaries index was down 17.9 points, or 0.32 per cent, at 5,493.6 points.
* The September share price index futures contract was down 29 points at 5,444 points, with 13,332 contracts traded.
* National turnover was 770 million shares worth $1.67 billion.
