Despite the strong performance by international markets last night, the XJO is currently 10 points (-0.3%) underwater.

The sectors are fairly evenly balanced between winners and losers, with utilities and industrials the strongest performers whilst financials and materials are the laggards.

In broad economic news Wayne Swan took to the pulpit this morning to deliver the government's latest mid-year economic and fiscal outlook statement.

He revealed an estimated $20 billion drop in revenue over the next four financial years due to the difficult global economic conditions, which has likely been a contributing factor to today's market weakness.

Around the region Asian markets are outperforming our market; the Nikkei is up 1% whilst the Hang Seng and Shanghai Composite are marginally higher.

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Midday Market Analysis: Bulls Lack Conviction is a post from: Australian Stock Report Market Pulse Blog