The Australian share market has opened sharply lower ahead of the central bank’s decision on monetary policy and after a negative lead from overseas.
The benchmark S&P/ASX200 index was down 99.1 points, or 1.44 per cent, to 6,763.2 points at 1015 AEDT on Tuesday, while the broader All Ordinaries was down 97.8 points, or 1.40 per cent, to 6,867.5 points.
Tech and consumer staple shares had the largest losses in the first 15 minutes of trading, falling 2.26 per cent and 1.97 per cent respectively.
Mining giant BHP was down 1.21 per cent to $37.84, Rio Tinto was down 1.39 per cent to $96.16 and Fortescue Metals was down 1.45 per cent to $9.875.
The big four banks – ANZ, Commonwealth, NAB and Westpac – were down between 0.67 per cent and 1.61 per cent.
Wall Street slipped overnight following US data indicating manufacturing activity contracted in November for the fourth consecutive month and after US President Donald Trump said he would restore tariffs on steel imported from Brazil and Argentina.
The Dow Jones Industrial Average was down 0.96 per cent, the S&P 500 was down 0.86 per cent and the tech-heavy Nasdaq Composite was down 1.12 per cent.
The FTSE 100 in the UK ended down 0.8 per cent and Germany’s DAX stock index closed 2.1 per cent lower.
The Reserve Bank of Australia will announce its decision on the cash rate at 1430 AEST on Tuesday, with most economists expecting no change.
The Aussie dollar is buying 68.18 US cents from 67.75 US cents on Monday.