The S&P/ASX200 fell 56.5 points by midday, down 0.59 per cent, to 9,196.3, as the broader All Ordinaries slipped 48.4 points, or 0.51 per cent, to 9,395.3.
"US equity markets closed lower overnight as lingering uncertainty over the Middle East and hawkish Fed speak weighed on sentiment ahead of tonight's critical CPI report," IG market analyst Tony Sycamore said.
Brent crude prices briefly spiked above $US90 a barrel for the first time since July, supporting refinery operators Ampol and Viva, but utilities was the only sector able to convincingly evade a whirlpool of souring risk sentiment as the other 10 dipped.
Driving utilities boost was a nearly five per cent jump in AGL's share price to $8.58, after a nearly seven-fold increase in its full-year statutory net profit, while its underlying result actually dipped and missed consensus.
The heavyweight financials sector fell one per cent, as CommBank shares slumped to $171.69, despite the bank's $11 billion full-year net profit beating expectations as boss Matt Comyn warned about a resilient but lumbering Australian economy.
"Growth is slowing, with higher interest rates and inflation placing uneven pressure on household incomes and economic activity," Mr Comyn told an earnings briefing on Wednesday.
The comments came after Westpac, NAB and ANZ flagged sharp dips in their respective mortgage applications since May's federal Budget.
Suncorp bucked the trend with a 3.8 per cent lift as its $1 billion post-tax net profit came in at the upper end of forecasts.
Raw materials stocks dipped 0.2 per cent, as mega-cap miners BHP, Rio Tinto and Fortescue traded lower when copper and iron ore futures stalled.
The gold price also consolidated after a recent rally to roughly $US4,388 ($A6,213) an ounce, delivering a mixed and ultimately flat performance for the sub-index.
Communications, real estate and consumer cyclical stocks were the worst performers, with each segment down 1.1 per cent or more.
In company news, Seek shares tumbled almost 15 per cent after a lift in full-year profit was impacted by a $201 million write-down due to the Seek Growth Fund.
Premier Investments traded more than seven per cent lower after it downgraded earnings guidance amid difficult trading conditions and a weak retail economic outlook for the UK.
The Australian dollar is buying 70.59 US cents, up slightly from 70.52 US cents on Tuesday at 5pm.
13°C