Australian shares are expected to open lower on Tuesday after a sharp decline in oil prices and renewed selling pressure across technology stocks on Wall Street weighed on investor sentiment.
ASX 200 futures were down 20 points, or 0.2%, at 8,821, pointing to a softer start for the local market.
Overnight in the United States, major indexes ended mixed as investors rotated away from technology stocks and monitored expectations for the Federal Reserve's next policy move.
The Dow Jones Industrial Average gained 262.8 points, or 0.5%, to 52,210.1. The S&P 500 edged 0.02% higher to 7,413.2, while the Nasdaq Composite fell 43.7 points, or 0.2%, to 24,932.1.
Technology stocks faced another wave of selling, with Nvidia dropping 5% and losing its position as the world's most valuable company to Apple.
"Today represents a continuation of the rotational market that we've seen," Bill Merz, head of capital markets research and portfolio construction at U.S. Bank Asset Management Group, said in a Reuters report.
"Part of the market reaction may be related to that creeping suspicion that perhaps a rate hike is coming."
Oil prices also tumbled after U.S. President Donald Trump said Washington was engaged in "good talks" with Iran, raising hopes that diplomatic efforts could ease tensions in the Middle East.
The Australian sharemarket closed higher on Monday, rising 121.7 points, or 1.4%, to 8,894.0, with 10 of the benchmark's 11 sectors finishing in positive territory.
On the bond markets, Australian 10-year rates were up 0.1% at 5.025% and two-year government yields eased 0.3% at 4.664%.
