THE share market opened lower today following strongly negative leads from key indices in the US and Europe overnight.
At 10.10am (AEST), the benchmark S&P/ASX200 index was down 53 points, or 1.18 per cent, at 4426.7 points, while the broader All Ordinaries index was 51.9 points lower, by 1.15 per cent, at 4452.2.
On the Sydney Futures Exchange, the September futures contract was 66 points lower, or 1.15 per cent, at 4421 points, on volume of 4487 contracts.
US stocks tumbled yesterday as investors fretted about the Federal Reserve's more cautious outlook on the economic recovery from recession and looming financial reform legislation.
The Dow Jones Industrial Average slid 145.64 points, or 1.41 per cent, to close at 10,152.80.
The tech-rich Nasdaq index slid 36.81 points, or 1.63 per cent, to 2217.42 and the broad-market S&P 500 index lost 18.35 points, 1.68 per cent, at 1073.69.
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Locally, the big four banks all opened lower.
NAB fell 38c to $24.00, Westpac lost 22c to $21.90, ANZ fell 45c to $22.38, and Commonwealth was 69c lower at $50.13.
Among the big miners, Rio Tinto down 93c, or 1.3 per cent, to $70.80, and BHP Billiton was 37c lower, 0.93 per cent, at $39.28.
Resourceshares fell despite stronger commodities markets overnight, with precious metals, copper and oil all rising.
RBS Morgans private client adviser Craig Walker said the market was reacting to a softening of most overseas markets.
"We are seeing a broad based sell off following the leads from overseas," he said.
"The Dow was particularly weak at the end of the session.
"The chief concern there is people are now starting to question exactly what impact the issues in Europe will have on US growth."
Mr Walker said the excitement seen in resource stocks yesterday following an historic change of government leadership had died down.
"In part that is due to people acknowledging it will still be a little while before issues around the resource tax are resolved," he said.
At 10.40am, gold was in positive territory, with Newcrest Mining adding 56c, or 1.57 per cent, to $36.21 while Lihir Gold Ltd rose 7c, or 1.6 per cent, to $4.44.
"Gold is trading at or around record highs," Mr Walker said.
"It tends to attract investment at times of unease so that's why those miners are doing well."
The spot price of gold in Sydney was $US1243.1, up $10.14 from $US1232.96 per fine ounce at close yesterday.
Rural property group Elders Ltd also made a comeback rising 1c, or3 per cent, to 34c after sinking to a record low of 33c yesterday.
The most heavily tradedshare by volume was Samson Oil and Gas with 73.4 million shares traded for $2.9 million after it told the market it would sell more than half of its holdings in Wyoming for about $US61 million.
Samson Oil and Gas shares rose 1c, or 27.27 per cent, to 4.2c.
Total market turnover was 662.01 million shares changing hands for $4.07 billion with 223 up 486 down and 305 unchanged.
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