Early in the session the XJO was up close to 2% but has since fallen away sharply to currently be underwater on the day.
The sectors are fairly evenly balanced at this stage, with the consumer discretionary and telco stocks faring best, whilst utilities and industrials are struggling.
In company news, Pacific Brands reported its results this morning, delivering slightly stronger than expected fiscal 2011 numbers.
The company also announced an on-market share buyback, up to 10% of issued capital. The announcements have seen the stock trade as much as 10% higher.
Around the region, Asian markets are mixed; the Hang Seng is down 1% whilst the Shanghai Composite is stronger.