The share market is lower as oil prices continue to slide and iron ore also takes a fall.
Plunging oil prices are causing uncertainty and starting to affect other sectors of the market, IG market strategist Evan Lucas said.
“Last night’s oil rout is dragging on the rest of the world,” he said.
European benchmark Brent oil closed below $US50 a barrel for the first time since April 2009 following a gloomy petroleum market forecast from Goldman Sachs.
Mr Lucas said there were fears the price of oil could drop below $US40 a barrel.
In the energy sector at 1200 AEDT, Santos was down six cents at $7.23, Woodside Petroleum had dropped 70.5 cents to $35.645 and Oil Search was 20 cents weaker at $7.10.
A fall in iron ore prices had also hurt miners, with BHP Billiton down 55 cents at $27.96, Rio Tinto down $1.05 at $57.45 and Fortescue Metals down 14.5 cents, or 5.4 per cent, at $2.545.
Gold miners continued to rise in line with the price of the precious metal, with Newcrest up 48 cents at $12.97.
The major banks were another weight on the market, as investors consider profit growth may be levelling off in the wake of slowing consumer confidence and lending.
Commonwealth Bank had retreated 49 cents to $85.16, Westpac was down 28 cents at $33.06, NAB had lost 29 cents to $33.63 and ANZ was 28 cents lower at $31.95.
Telstra was up 2.5 cents at $6.065.
KEY FACTS
* At 1206 AEDT on Tuesday, the benchmark S&P/ASX200 index was down 40.1 points, or 0.74 per cent, at 5,382.6 points.
* The broader All Ordinaries index was down 38.6 points, or 0.71 per cent, at 5,360.9 points.
* The March share price index futures contract was 48 points lower at 5,337 points, with 12,104 contracts traded.
* National turnover was 561 million securities worth $1.1 billion.
