Stock index futures were flat at 4,467, but that was a 28.4 point discount to the underlying S&P/ASX 200 index. The benchmark fell 1.9 percent on Tuesday.
Takeover target Macarthur Coal will remain in focus as investors await its answer to a A$4.7 billion takeover offer from Peabody and ArcelorMittal.
National Australia Bank will also be watched after a newspaper report it sought more time to put in a bid for Lloyds branches on sale.
Moody's downgrade of Ireland's credit rating to junk late in the session provided the latest jolt to stock investors, reminding markets of the scope of Europe's debt problems.
European officials, for the first time, refused to rule out default by Greece. Investors feared the crisis could overtake the bigger European economies of Spain and Italy. The concern is bank exposure to troubled euro-zone debt will hurt their profits and liquidity.
New Zealand's benchmark NZX 50 index dropped 0.5 percent in early trade.
Copyright Reuters, 2011