THE share market opened lower today as US markets fell overnight after Federal Reserve chairman Ben Bernanke said that the US economy had weakened.
At 10.10am (AEST), the benchmark S&P/ASX200 index was down 14.3 points, or 0.32 per cent, at 4398.4 points, while the broader All Ordinaries index had lost 13.3 points, or 0.3 per cent, to 4415.4 points.
On the Sydney Futures Exchange, the September share price index futures contract had reversed 26 points to 4372 points, with 6,048 contracts traded.
On Wall Street overnight, shares closed sharply lower after Federal Reserve chairman Ben Bernanke confirmed investor fears that the economy has weakened.
The economy was fragile, but he did not forecast that it would fall back into recession.
Dr Bernanke told the US Senate Banking Committee that the central bank remained "prepared to take further policy actions as needed" to help the world's largest economy grow to potential amid price stability.
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The Dow Jones Industrial Average index fell 109.43 points, or 1.07 per cent, at 10,120.53 points.
The Standard & Poor's 500 index dropped 13.89 points, or 1.28 per cent, to 1069.59 points, and the Nasdaq composite index descended 35.16 points, or 1.58 per cent, to 2187.33 points.
IG Markets research analyst Ben Potter said the Australian market had followed US markets downwards on the back of Dr Bernanke's comments.
"The leads from the US and Bernanke have increased the uncertainty of outlook and driven the market lower," Mr Potter said.
"The financials (are) the worst (sector) at the moment."
Mr Potter said the materials sector was stronger on the back of higher base metals prices in London, but that might drift lower during trading later on today.
"We're really at the mercy of global leads at the moment."
In early news today, Newcrest Mining was 11c higher at $33.42 after reporting full year gold and copper production within guidance.
At 10.25am, in the resources sector, energy company Santos had eased 4c to $13.71 as it said operations at Cooper Basin would continue to be affected by the flooding in Central Australia.
Oil and gas explorer and producer Petsec Energy was 0.5c higher at 18.5c as it reduced its 2010 production and revenue forecast to about 4.0 Bcfe (billions of cubic feet equivalent) and $US28 million ($31.94 million) respectively.
Underground coal gasification company Linc Energy slipped 4c to $1.495 after it said it remains in talks with several parties about selling its non-core Queensland coal tenements.
Receivables manager Collection House was steady at 75c after it raised its full year dividend after posting a 21 per cent rise in full-year net profit.
European shares close lowerFederal Reserve keeps rates at record lows
