The local share market was down 0.3 per cent at noon as traders digest Federal Reserve minutes and more Middle East clashes.
The New Year's hangover for the local bourse is lingering, with shares during morning trade extending their losses amid more conflict in the Middle East and questions about the aggressive US rate cuts many expect this year.
At noon AEDT on Thursday, the benchmark S&P/ASX200 index was down 22.1 points, or 0.29 per cent, to 7,501.1, after dropping 1.37 per cent on Wednesday. The broader All Ordinaries was down 21.4 points, or 0.28 per cent, to 7,735.9 at midday.
On Wall Street, the S&P500 fell 0.8 per cent as traders digested the release of minutes from the rate-setting Federal Open Market Committee's meeting last month noting members had a "unusually elevated degree of uncertainty" about the path forward.
While members expect three rate cuts in 2024, some noted the potential for additional hikes this year depending on how conditions evolve.
Geopolitical risks in the Middle East were also weighing on sentiment with renewed fears that the fighting might spiral into a broader war.
In Iran, officials were vowing revenge after a bombing at a memorial for the country's former top general killed over 100 people, while in Lebanon, Hezbollah was pledging to avenge the assassination of a Hamas leader in a drone strike.
Nine of the ASX's 11 sectors were down at midday, with industrials up marginally and energy up 1.4 per cent, buoyed again by coalminers.
Whitehaven Coal had gained 2.5 per cent to an 11-month high of $7.88, while Yancoal was up 2.8 per cent and New Hope had added 1.6 per cent.
The big retail banks were all lower, with ANZ down 1.1 per cent, Westpac falling 1.3 per cent, NAB down 1.0 per cent and CBA down 0.7 per cent.
In the heavyweight mining sector, the iron ore giants were up while goldminers and lithium miners were down.
Fortescue had gained 0.8 per cent, BHP was up 0.2 per cent and Rio Tinto had added 0.3 per cent, while Northern Star was down 2.3 per cent and Pilbara had slid 1.3 per cent.
The Australian dollar was buying 67.27 US cents, from 67.65 US cents at Wednesday's ASX close.
