Australia Market continues selling mood

The Australian market continued its selling mood with the miners dragging stocks lower as new Anglo American is to slash its global workforce by two thirds.

At the 10.15 a.m. (AEDT) official market open, the benchmark S&P/ASX200 index was down 0.63 percent at 5076.4, while the broader All Ordinaries index fell 0.6 percent at 5126.8.

The overnight news of Anglo American slashing its workforce by up to two thirds, showing the pain facing the global resources sector, ensures Australia's miners are the focus Monday and likely to spread through the "big five" miners, IG market strategist Evan Lucas said.

"It's headline grabbing. However it's the change to its progressive dividend policy that should have mining investors sitting up by completely scrapping its payout policy until 2018," Lucas said.

"Just two weeks ago, BHP maintained its progressive dividend policy. However, it clearly laid the ground work to retract it if conditions persist."

BHP Billiton fell 1.47 percent to a new 10-year low, rival Rio Tinto slumped 3.30 percent. However, gold miner Newcrest is up 0.54 percent.

Oil Search gained 0.95 percent, Woodside added 0.67 percent, Santos rallied 2.11 percent as the bargain hunters flooded in.

ANZ is down 0.93 percent, the Commonwealth Bank of Australia slipped 0.54 percent, the National Australia Bank fell 0.99 percent while Westpac is down 0.37 percent.

Wesfarmers fell 0.78 percent and Woolworths edged 0.17 percent lower.

Telstra slipped 1.12 percent while Qantas is 1.81 percent weaker. Endit