The Australian sharemarket clawed back most of its early losses by noon but remained in negative territory following weak overseas leads.
At 1201 AEST, the benchmark S&P/ASX200 index was down 5.6 points, or 0.12 per cent, at 4671.8 points while the broader All Ordinaries index had slipped 6.2 points, or 0.13 per cent, to 4677.9 points.
On the Sydney Futures Exchange, the December share price index contract was 12 points lower at 4682 points on a volume of 8486 contracts.
CommSec market analyst Juliette Saly said losses on the US' Dow Jones index overnight weighed on the local market in early trade but bank stocks were driving a recovery to almost neutral territory.
"Some of the banks are coming back and that's lending a bit of support," Ms Saly said.
By 1202 AEST, National Australia Bank added eight cents to $29.62, Westpac was steady at $24.88, Commonwealth Bank eased eight cents to $48.82 and ANZ shed one cent to $23.14.
"As long as BHP remains positive, that should add some points to the market as well," Ms Saly said.
BHP Billiton lifted three cents to $38.11 by 1203 AEST while Rio Tinto sank 37 cents to $60.32.
Among energy stocks, Woodside Petroleum shed 67 cents to $50.56, Oil Search was steady at $6.40 and Santos backtracked 12 cents to $15.15.
Ms Saly said key defensive stocks were in the red.
Telstra was down two cents at $3.28 and CSL fell 15 cents to $34.25 by 1204 AEST.
Gold stocks were mixed at 1205 AEST. Lihir inched three cents higher to $2.99, Newcrest surged 50 cents to $33.80 and Newmont was six cents weaker at $5.13.
Making headlines on Tuesday, New Hope Corp posted a sharp rise in annual profit after its earnings were boosted by proceeds from the sale of its New Saraji coal project.
New Hope shares were up nine cents, or 1.55 per cent, at $5.89 at 1205 AEST.
Engineering company United Group expects to maintain its annual guidance despite an unsuccessful outcome to a dispute involving NSW RailCorp and the manufacture and delivery of railcars.
At 1207 AEST, United Group was up 19 cents, or 1.21 per cent, at $15.90.
Solomon Lew's Premier Investments almost doubled full year profit after its Just Group casual clothing chain reported better-than-expected results.
Premier Investments rose 39 cents, or 4.96 per cent, to $8.25 by 1208 AEST.
Among retail stocks, Coles owner Wesfarmers rose 11 cents to $26.36 by 1210 AEST while rival Woolworths inched two cents lower to $28.89.
The most traded stock by volume was nickel miner Australian Mines with 81.44 million shares worth $162,588 changing hands.
Australian Mines shares were steady at 0.2 cents at 1211 AEST.
Market turnover was 1.2 billion shares worth $1.74 billion, with 435 stocks up, 525 down and 316 steady.
