Australia markets closed

ASX ends flat Wednesday after recovery from early fall

Australian shares were down on Wednesday morning, but had recovered by lunchtime. (Image: Getty)

The Australian share market barely finished higher on Wednesday to record a seventh consecutive day of gains.

The ASX200 index finished trading 0.057 per cent higher to hit 6,148.40 points.

The All Ordinaries ended the day up 0.1 per cent to reach 6,269.30.

The local market will now look overnight to see how Wall Street reacts to any announcements from the US Federal Reserve’s two-day meeting.

What happened at lunchtime?

The Australian stock market has rallied from a negative start Wednesday morning to keep its head above water at lunchtime.

The benchmark ASX200 index is up 0.52 per cent at 12:04pm AEST to reach 6,176.90 points.

The broader All Ordinaries had also gone up 0.52 per cent to reach 6,295.30 points at the same point in time.

The recovery came after a sharp fall at the start of trade, which saw financial and energy shares dragging the market down.

What happened this morning?

Australian shares are down Wednesday morning, following the overnight lead from Wall Street.

The ASX200 index dipped 0.8 per cent to hit 6,095.50 points in the first 17 minutes of trade, while the All Ordinaries headed south 0.63 per cent to reach 6,223.20 in the same period.

Australian investors will be keeping an eye on new numbers for housing, and personal and business loans due out 11:30am.

What happened overnight?

The S&P500 and the Dow Jones Industrial fell overnight as the Federal Reserve started a two-day meeting.

The NASDAQ was an exception, as it finished trading at a historic high for the second consecutive day.

No major announcements are expected to come out of the US Federal Reserve's current meeting, but the markets will keep a close eye on any comments regarding economic recovery. 

Harvest Volatility Management head of trading and research Mike Zigmont told AAP that the sell-off was likely a locking in of profits from the good run the few days prior.

"It strikes me as maybe a reflexive sell-off as a result of a tremendous rally over the past week," he said.

"There's no news headline that screams bearish catalyst to me… In the grand scheme of things, it seems like the market has caught a bullish fever, and it's feeding on itself."

The Dow Jones Industrial lost 1.09 per cent, the S&P500 dipped 0.78 per cent, and the NASDAQ was up 0.29 per cent.

SPI200 futures were down 1.39 per cent at 8am AEST, forecasting Australian markets would start trading lower on Wednesday.

with AAP

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