The ASX 200 see-sawed after a surge on Wall Street where investors were buoyed by the ceasefire between Iran and Israel.
The index jumped 0.2 per cent before falling throughout the first hour of trading on Wednesday.
Defence company DroneShield is up almost 20 per cent after signing a $61m European military deal while gaming manufacturer Light & Wonder has climbed 9.6 per cent and Paladin Energy has risen 3.2 per cent.
Investors will be keenly watching Virgin Australia which surged 11.4 per cent above its $2.90 IPO price after hitting the market.
The airline has added 2.9 per cent since it began trading on Wednesday, while its main rival Qantas is up 0.2 per cent following a massive surge on Tuesday.
The ASX’s rise follows Donald Trump on Monday, after trading closed, that Israel and Iran had reached a ceasefire to end their 12-day war.
But both sides accused each other of violating the truce on Tuesday, sparking an extraordinary outburst from Trump.
“I’ve got to get Israel to calm down now,” Trump said.
Iran and Israel had been fighting “so long and so hard that they don’t know what the f**k they’re doing,” the US President added.
Wall Street was in the green on Tuesday with the S&P 500 jumping 1.1 per cent, the Nasdaq adding 1.5 per cent and the Dow Jones rising 1.2 per cent.
London’s FTSE 250 Index rose one per cent, Germany’s DAX jumped 1.6 per cent and the STOXX Europe 600 added 1.1 per cent on Tuesday.
New Zealand’s has zig-zagged since opening on Wednesday while Japan’s Nikkei 225 is flat.
-With Reuters