The Australian stock market opened flat after United States stocks closed on a negative note following a mixed batch of economic data and a big jump in bond yields.
At 1015 AEST official market open, the benchmark S&P/ASX200 index edged up 0.06% to 5,116.9 points, while the broader All Ordinaries index inched 0.09% higher to 5,104.7 points.
IG analyst Evan Lucas said global markets are volatile ahead of the United States Federal Reserve's decision on tapering its stimulus program.
"A correction feels like it's only a day away, the markets continue to hold near record highs, yet volatility and market angst is increasing," Mr Lucas said.
"The biggest concern is coming out of the bond market; if bond yields continue to shoot up it will start to stall credit, funding cost will balloon and it will stifle growth."
Financials were mixed.
Commonwealth Bank fell 3.02% to $71.09, while ANZ Banking Group rose 0.71% to $29.66.
National Australia Bank lifted 0.8% to $31.52 and Westpac Banking Corporation added 1.34% to $31.68.
Investment bank Macquarie Group fell 0.2% to $44.33.
In the insurance sector, QBE rose 0.24% to $16.94, Insurance Australia Group added 0.69% to $5.85 and Suncorp lifted 1.38% to $12.51.
Materials were mixed, with the major miners falling.
BHP Billiton shed 0.57% to $36.66, while Rio Tinto fell 0.82% to $59.59.
Fortescue Metals dropped 0.5% to $4.01.
Whitehaven Coal rose 0.5% to $2.03 and Newcrest put on 1.43% to $12.75.
In the energy sector, Santos lifted 0.55% to $14.62, Oil Search gained 1.21% to $8.34 and Woodside rose 1.46% to $38.85.
In economic news, the Australian Bureau of Statistics (ABS) is due to release new motor vehicle sales for July.
In Australia, the market on Friday finished weaker as profit taking hit the big banks and resource companies.
The benchmark S&P/ASX200 index was 38.5 points, or 0.75% lower, at 5,113.9 points.
The broader All Ordinaries index was down 36.6 points, or 0.71%, to 5,100.1 points.