By noon AEDT, the S&P/ASX200 was down 1.3 points, or 0.02 per cent, to 7929.7, as the broader All Ordinaries fell 6.7 points, or 0.08 per cent, to 8151.8 points.
The slip came after US markets rose slightly on Friday, following an indication US President Donald Trump's next round of tariffs, set for implementation on April 2, would be more targeted than those slapped on China, Canada, Mexico and all steel and aluminium imports.
The top-200 fell as low 7899.5 in early trading, but dip-buyers had erased half of the losses by midday.
The local bourse is almost 3 per cent lower than where it began 2025 and roughly 7.5 per cent shy of its 8615.2 all-time high, which it reached in February.
"With six trading sessions remaining in March, the S&P/ASX200 needs to rally nearly 3 per cent from Friday's closing price to avoid a second consecutive month of losses and, more importantly, its second-straight losing quarter," IG Markets strategist Tony Sycamore said.
The 11 local sectors were mixed, with six trading lower by midday and materials, consumer staples and IT stocks leading the losses.
Materials stocks weighed heavily on the market, down more than 1.2 per cent as James Hardie lost more than 12 per cent of its value after striking a deal to merge with New York-listed AZEK. James Hardie will keep its CDI listing and ASX inclusion.
South32 was down more than 2 per cent to $3.46, after it and South African subsidiary Hillside Aluminium were accused of stealing information about metals transportation equipment from a contractor.
Consumer staples stocks were down 1.1 per cent, washing some of Friday's massive 3.9 per cent gains after favourable inquiry finding by the competition watchdog.
Financials were up 0.7 per cent as the Commonwealth Bank led the big four into the green. CBA shares were up 1.2 per cent to $147.29.
Oil prices have rolled over after hitting resistance at February's low, with Brent crude futures slipping 0.5 per cent to trade at $US71.67, and as Iraq announced plans to lift production by 6 million barrels per day.
Gold has also taken a much-needed breather after soaring to all time highs of $US3057.21/oz, and is trading 1.1 per cent lower to around $US3022/oz.
Looking ahead for the week, monthly Australian inflation data is due on Wednesday, and Tuesday night's federal budget is not expected to be a major market mover.
The Australian dollar has rebounded after dipping towards the 62.50 US cent level on Friday, and is buying 62.92 US cents.
19°C