At 10.15am (AEDT), the benchmark S&P/ASX200 was down 24.2 points, or 0.68 per cent, to 3,557.9, while the broader All Ordinaries lost 21.6 points, or 0.61 per cent, to 3510.7.
On the Sydney Futures Exchange, the June share price index contract was trading one point lower at 3565 on volume of 7,206 contracts.
Most sectors were mixed, including financial stocks.
Westpac was down ten cents to $18.99, NAB was up ten cents to $20.20, ANZ had lost five cents to $15.70 and Commonwealth Bank added 10 cents to $34.83.
Among the miners, BHP Billiton was up six cents to $31.97, and rival Rio Tinto gained 14 cents to $56.71.
Wall Street rebounded overnight despite more bleak economic data.
Analysts said the majority of gains were a result of large investors loading up on rising stocks in order to report strong holdings at the end of the first quarter.
The Dow Jones Industrial Average settled up 86.9 points, or 1.16 per cent, to 7608.92.
The broader Standard & Poor's 500 index rose 10.34 points, or 1.31 per cent, to 797.87 and the Nasdaq composite index added 26.79 points, or 1.78 per cent, to settle at 1528.59.
Burrell Stockbroking director Richard Herring said investors seemed content to consolidate positions given yesterday's better than expected performance.
"Our performance yesterday was perhaps better than anticipated given the poor lead form offshore, and I think today people are really happy to see the market consolidate ...," Mr Herring said.
"We've had a really good March so if we can hold together for another four to six weeks we then we may see renewed confidence in the equities markets."
Mr Herring said the market would likely remain relatively flat throughout the day.
"Volumes look pretty light again so I think we'll wash around in the absence of any startling corporate news that may come out during the day," he said.
One of the best early performers was Fortescue Metals Group, which added 13 cents, or 5.1 per cent, to $2.68.
Fortescue chief executive Andrew Forrest said on Wednesday the group would maintain its independence even after China's Hunan Valin Iron and Steel Group increases its stake in the Western Australian miner.
Federal Treasurer Wayne Swan allowed Hunan Valin Iron and Steel Group to lift its stake in Fortescue to 17.55 per cent from 9.79 per cent.
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