Australian stocks tumble amid global bank worries

The sharemarket was down as investors looked for a winner in the first US presidential debate.

Australian stocks followed the lead of global markets hit by a banks sell-off.

The Australian share market was lower as investors looked for a winner in the first US presidential candidate debate.

The benchmark S & P/ASX 200 index was down 40.1 points, or 0.74 per cent, at noon (AEST) following Wall Street’s overnight fall, with banks, energy, mining and telecommunication stocks all in the red.

The broader All Ordinaries index was down 39 points, or 0.71 per cent, at 5,480.1 points.

Australian shares recovered slightly from a one per cent drop in the first hour of trading ahead of the debate between presidential candidates Hillary Clinton and Donald Trump, which was in full swing at midday.

Shares in Santos and Woodside Petroleum were down despite oil prices rallying overnight as the world’s largest oil producers gather in Algeria to discuss supply.

AAP