At 12.01pm (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 12.02pm (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 12.03pm (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.
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