The benchmark index was down more than one per cent within the first half hour of trade, with banks, energy and resources stocks leading the decline.
“Whenever you get bouts of nervousness in the US and European markets, it does tend to get washed to our shores as well,” Patersons strategist Tony Farnham said.
“There has been nervousness about the financial sector, and the lower commodity prices are weighing on the materials and energy stocks.”
Overnight, US stocks dropped as oil prices slid and worries about the global economy resurfaced, with the Dow Jones industrial average closing down nearly one per cent.
The growth worries weighed especially on interest-rate sensitive financials, which were also affected by a Moody’s report saying Wall Street’s biggest banks need to set aside more cash to cover losses as low oil prices take their toll.
In the local market, energy stocks were among the worst performing after crude prices settled more than one per cent lower.
Energy giant Woodside Petroleum lost 43 cents to $24.64, Santos fell 10 cents to $3.72, while Origin Energy slipped 19 cents or 4.1 per cent to $4.46.
The major banks also took a hit, with Commonwealth Bank shares briefly slipping below $70 and trading at their lowest level since July 2013.
National Australia Bank fell 55 cents at $24.97, Westpac lost 62 cents at $28.23, and ANZ declined 53 cents to $22.09.
Mining giants BHP BIlliton and Rio Tinto were down 2.7 per cent and 1.5 per cent respectively.
KEY FACTS:
* At 1049 AEST, the benchmark S&P/ASX200 index was down 63.8 points, or 1.3 per cent, at 4,900.3 points.
* The broader All Ordinaries index was down 60.2 points, or 1.2 per cent, at 4,982 points.
* The June share price index futures contract was down 65 points at 4,880 points, with 11,290 contracts traded.
* National turnover was 500.69 million securities traded, worth $693.5 million.
AAP
