THE stock market was lower at noon as uncertainty about the recovery in the global economy weighed on miners and banks.
At 12pm AEST, the benchmark S&P/ASX200 index was down 23.6 points, or 0.53 per cent, at 4429.1 points, while the broader All Ordinaries index dropped 22.3 points, or 0.50 per cent, to 4460.8 points.
On the Sydney Futures Exchange, the September share price index futures contract was 30 points lower at 4416 on volume of 17,663 contracts.
RBS Morgans private client adviser Craig Walker said the local market was weaker at noon, although the bourse had regained some of today's initial losses.
"The Dow did not provide a very good lead and even now we are still seeing a bit of weakness," Mr Walker said from Brisbane. "BHP and Rio, along with three of the four major banks, are pulling the market back a bit."
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Most of the major banks were weaker at 12pm AEST.
ANZ was down 14 cents at $22.81, National Australia Bank was 17 cents lower at $23.38 and Westpac was down 29 cents at $22.04.
Commonwealth Bank bucked the negative sentiment, with its shares up two cents at $50.57.
At 12.01pmAEST, mining giant BHP Billiton was 65 cents lower, or 1.72 per cent, at $37.24, while Rio Tinto was down 81 cents at $70.20.
Mr Walker said BHP was being dragged lower on the outlook for the global economy.
"It is just continuing on certainty about the global economic recovery, and that we have an unresolved election is not helping BHP's cause," he said.
Trading on the local market was pretty light, following the turnover on Wall Street overnight, Mr Walker said.
"Last night in the US was the lightest session so far this year," he said.
"There are some pretty big economic numbers out (in the US) later this week and some people are just sitting on the fence and will probably sit back and see."
Wall Street fell in the year's lightest volume overnight as worries about the pace of economic recovery overshadowed data showing a rise in consumer spending and income.
The Dow Jones industrial average dropped 140.92 points, or 1.39 per cent, to 10,009.73.
In company news today, Southern Cross Media Group Ltd has recorded an $82.7 million annual loss and says it is cautiously optimistic about the current financial year.
Shares in the media company were up one cent at $1.78.
Fellow media companies were weaker, with News Corp down 13 cents at $15.62 and its non-voting stock up one cent at $13.90.
Fairfax Media was steady at $1.445.
The energy sector was weaker, with Santos down 10 cents at $14.33, while Woodside Petroleum was 17 cents lower at $42.28.
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