The Australian sharemarket has opened slightly lower after last night's release of the federal budget despite positive offshore leads as Wall Street printed fresh record highs.
At 10.16am (AEST) the S&P/ASX200 index fell 0.32 points, or 17.6%, to 5,480.6, while the broader All Ordinaries index lost 15.3 points, or 0.28%, to 5,460.1.
IG market strategist Evan Lucas said the budget handed down overnight wasn't as drastic as early leaks suggested.
"Some economists feared this budget would put a fiscal drag on to the economy of up to 0.69% of GDP," Mr Lucas said.
"This hasn’t eventuated with current modelling, seeing only a 0.3% drag.
"However, that’s not to say it won’t cut into growth over the coming budgets as the Coalition looks to return to surplus."
No major local economic news is expected following the federal budget's release last night.
In equities news, Commonwealth Bank posted its quarterly trading update and CSR released its full-year results.
In Australia, the market yesterday closed higher, led by big mining stocks, after markets in the United States lifted and investment bank JPMorgan expressed confidence in the resources sector.
The benchmark S&P/ASX200 index was up 49.8 points, or 0.91%, at 5,498.2 points.
The broader All Ordinaries index was up 46.4 points, or 0.85%, at 5,475.4 points.