Posted April 19, 2017 12:24:13

Photo: ASX down for the third time in four days as global concerns hang over investors. (AAP: Tracey Nearmy)

The Australian share market has slid further after a weak session in global markets overnight and another sell-off in key commodities.

The benchmark ASX200 was down 0.4 per cent to 5844 at 11:30am (AEST) while the broader All Ordinaries index slipped a similar amount to 5,811.

It is the third fall in four days as investors start to doubt the longevity of the faltering "reflation" trade, which started with the election of President Donald Trump late last year.

The wave of selling was across the board with energy and financials the hardest hit.

Westpac suffered the sharpest decline among the banks, down 1 per cent to $34.13 in morning trade.

Oil Search fell 2.5 per cent to $7.17 after posting a disappointing quarterly production report.

Bargain hunters move in on miners and telcos

The big miners shrugged off a tough night of trading in London and ongoing weakness in the price of iron ore.

Bargain hunters moved in on Fortescue, up 3 per cent to $5.24 and Rio Tinto, up 0.9 per cent to $58.54, while BHP remained weaker, down another 0.5 per cent to $23.80.

However further weakness in futures treading in China this morning, with Dalian iron ore down another 3.5 per cent, may take the edge off the rebound.

Telcos were another bright spot after enduring a bruising couple of days.

Telstra pushed up 2.4 per cent to $4.10 and TPG rose more than 7 per cent to $5.90, after a series of analyst notes argued the sell off in the sector had gone too far.

Takeover target Tatts gained more ground on the back of yesterday's news that private equity firm KKR had slapped down a $7.3 billion all-cash bid for the gambling business.

Shares were up 1.6 per cent to $4.42, above the imputed bid price of $4.21 a share, suggesting investors believe there's more action from rival bidder Tabcorp on the way.

Weak results hit Wall Street

Healthcare and financial stocks were the worst performers on Wall Street overnight.

Goldman Sachs lost more than 4 per cent following earnings that fell short of expectations.

The bank reported a drop in quarterly trading revenue, noting it had underperformed in the quarter.

Shares in multinational manufacturer Johnson and Johnson also slumped overnight, suffering its worst day in 14 months, after the company's quarterly revenue missed market expectations.

Analysts appeared concerned with the results of both companies, noting it could add to unease about market valuations after a strong post-election rally.

A sharp fall in commodity prices, particularly in industrial metals, and ongoing geopolitical tensions also continue to weigh on market sentiment.

"Iron ore and coking coal should remain under pressure as the market becomes increasingly bearish," an ANZ note said.

"Gold remains well supported and should outperform as geopolitical tensions remain high."

Europe hit by UK uncertainty

European shares have hit three-week lows after British Prime Minister Theresa May called for an early election.

The pound rallied hard on the news, with a NAB analyst note remarking that the two-cent rise has meant the GBP/USD has broken its 200 day moving average for the first time since the Brexit referendum.

"[However] the moves in the pound were also helped along by general US dollar weakness," it said.

Europe's volatility index has reached its highest level since December 2016, with the close race in France's presidential election also weighing on investors.

Locally, the market is on track to follow yesterday's falls and open lower.

At 11:30am (AEST), the Australian dollar was down at $US75.32.

Brent oil eased to $US58.83 a barrel while the US benchmark West Texas Crude oil was also weaker at $US52.41 a barrel and spot gold was up at $US1,289 an ounce.

Topics: markets, business-economics-and-finance, australia, united-states, united-kingdom