Australian shares opened higher after a strong lead from Wall St but were expected to drift lower on a poor trading update from Westpac.
At 1010 AEST, the benchmark S&P/ASX200 index was up 5.4 points at 4,288.3, while the broader All Ordinaries index was up 10.8 points at 4,357.6.
On the ASX 24, the September share price index futures contract was down eight points at 4,642, with 11,687 contracts traded.
US stocks rallied on Monday, erasing last week's losses, after a raft of big merger and acquisition announcements spurred buying momentum.
The Dow Jones Industrial Average leapt 213.88 points (1.90 per cent) to finish at 11,482.90. The broader S&P 500 was up 25.68 points (2.18 per cent) at 1,204.49, and the tech-rich Nasdaq Composite gained 47.22 points (1.88 per cent) to 2,555.20.
MS Global's head of contracts for difference, Anthony Anderson, expected the market to drift lower, however, in response to Westpac Banking Corporation's quarterly trading update, released prior to market open.
Westpac shares lost 60 cents, or 2.8 per cent, to $20.57 after the bank posted a two per cent fall in third quarter cash earnings due to slowing credit growth.
The rest of the major banks started the day stronger, with National Australia Bank one cent higher at $23.58, ANZ gaining five cents to $20.70 and Commonwealth Bank up 12 cents at $47.50.
"These are all reasonably negative indicators in the economy really so I imagine the market might take (greater) stock of what's happening globally. It's probably had enough for the short term after this sobering news," he said.
Among other companies reporting results or otherwise making news on Tuesday, Qantas shares were almost four per cent higher, by six cents at $1.59m, after the airline group announced a new strategy including aircraft acquisitions, new brands, and 1,000 job losses.
OneSteel shares were up 1.7 per cent, or by 2.5 cents at $1.46, after the steelmaker posted an 11 per cent fall in net profit.
OZ Minerals was over one per cent lower, by 13 cents at $12.22, after posting a 72 per cent profit fall following the settlement of a class action against the miner.
James Hardie Industries stocks were more than five per cent higher, by 28 cents at $5.63, after the building products maker reported a 99 per cent fall in quarterly profit.
Shares in gambler Tabcorp were over one per cent higher, buy four cents at $3.23, after the company lifted net profit by 14 per cent, while its recently hived off casinos peer, Echo Group, was 2.7 per cent higher, by 10 cents, at $3.86 after it posted a maiden profit of $226 million, against the background of the falling market.
Among the miners, BHP Billiton was down 30 cents at $39.55 and Rio Tinto lost 29 cents to $74.23.
The price of gold in Sydney was $US1,765.20 per fine ounce, up $US19.60 from Monday's local close at $US1,735.60.
At 1010 AEST, gold miner Newcrest Mining shares were down 84 cents at $39.56, after it reported a 63 per cent lift in full year profit on Monday.
Preliminary national turnover at 1046 AEST was 509.3 million shares worth $1.32 billion, with 480 stocks up, 251 down, and 287 were steady.
