The Australian share market rallied in morning trade on the back of a strong lead from Wall St before giving up gains to close flat.
The benchmark S&P/ASX200 index closed 0.2 of a point lower at 5952.1 while the All Ordinaries Index inched 6.6 points higher to 6141.5.
The S&P/ASX200 had jumped as much as 0.75 per cent, approaching a three-week high and almost eclipsing the key 6000-point mark before pulling back.
ThinkMarkets Australia analyst Carl Capolingua said it was not uncommon after such a run to see some selling.
“It’s been a slow but steady grind lower since then,” Mr Capolingua said.
“There are still plenty of unknowns out there and I can see why you’d want to take some risk off the table ahead of the first US Presidential Debate. That’s a pretty big event risk.”
Bank of Queensland fell 7.24 per cent to $5.89 after announcing hefty provisioning for loan impairment expenses ahead of its full year results next month, with $133 million relating to costs associated with the economic damage of COVID-19.
That was a big jump from $10 million in April.
“It’s definitely taken the gloss off last week’s positive developments regarding the easing of lending rules,” Mr Capolingua said.
ANZ slipped 0.68 per cent to $17.58, Commonwealth Bank gave up 0.72 per cent to $65.02, National Australia Bank was 0.77 per cent softer at $18.08 and Westpac dropped 1.27 per cent to $17.16.
Mining heavyweight BHP was down 0.65 per cent at $36.89, Rio Tinto lost 0.76 per cent to $95.82 but Fortescue put on 1.89 per cent to $16.16.
Consumer staples were lower, with Coles easing 0.47 per cent to $17.12 and Woolworths dipping 0.53 per cent to $37.32.
Travel-related stocks were mixed after rallying on Monday because of the Federal Government extending aviation sector support.
Qantas added 2.18 per cent to $4.22, Webjet was 0.26 per cent lower at $3.89 and Flight Centre inched 0.14 per cent higher to $13.98.
Corporate Travel remains in a trading halt but announced it had inked a deal to buy a complementary US business for $US200.4 million ($A283 million), funded by a fully underwritten entitlement offer to raise $A375 million that may even lead to other acquisitions.
The Aussie dollar was buying 70.88 US cents, 55.07 British pence and 60.68 Euro cents in afternoon trade.