Australian shares were flat on Wednesday's close as investors remained cautious and risk-averse ahead of the US Federal Reserve's interest rate decision on Thursday.

The S&P/ASX 200 Index changed little to close at 8,309.4.

While the Fed is widely expected to cut rates, a pivot may cause stock to fall which may lead to buying opportunities, Reuters reported.

Investors will also be looking for signs of how aggressively the Fed will be cutting rates in 2025.

"The focus is on its outlook for next year," Bloomberg reported.

In domestic news, Australia is on pace for a slow recovery in economic activity over the next quarters, according to a report by Westpac.

The Westpac-Melbourne Institute Leading Index advanced to 0.3% in November from 0.2% in October, marking the measure's first back-to-back positive reads in nearly two and a half years.

In corporate news, Insignia Financial (ASX:IFL) rejected Bain Capital's proposal to acquire the company for AU$4 per share. Shares of the company fell past 4% at market close.

Capricorn Metals (ASX:CMM) named current chief operating officer Paul Criddle chief executive, effective Feb. 3, 2025, succeeding Kim Massey, who will retire at the end of January 2025.

The Australian Securities and Investments Commission is probing ANZ Group Holdings (NZE:ANZ, ASX:ANZ) over allegations of charging fees to deceased customers' accounts, The Australian reported.

In response to MT Newswires' request for comment, an ANZ spokesperson said: "Like all financial services organizations, we are in constant dialogue with regulators about a variety of matters and any questions on specifics should be directed to ASIC."