Australian shares look set to open flat after a pullback in US stocks overnight as global markets reacted negatively to news of a potential epidemic.

The SPI200 futures contract wavered on Wednesday but was down 2 points, or 0.03 per cent, at 7,006 at 0800 AEDT.

IG market analyst Kyle Rodda says the local market could bounce back after losses on Tuesday from stocks sensitive to a possible coronavirus epidemic.

“Travel and tourism-sensitive firms took a belting, as they did across global markets yesterday, as market participants bet that the virus outbreak would weigh on global travel and consumption,” he said in a note.

The Australian share market ended a five-day record-breaking streak with a modest retreat on Tuesday as the benchmark S&P/ASX200 index finished down 13.2 points, or 0.19 per cent, at 7,066.3.

The broader All Ordinaries index dropped 15.8 points, or 0.22 per cent, to 7,180.5 in quiet trade.

Overnight, US markets pulled back slightly after a Monday public holiday.

Investors will be looking with interest at the Westpac Consumer Confidence Index to come on Wednesday followed by skilled vacancy data.

The Australian dollar was buying 68.45 cents at 0800 AEDT on Wednesday.