Stocks slip on weak offshore leads

The market continues to slide as the US presidential contest narrows, with most sectors hit by selling.

The Australian Securities Exchange boards in Sydney. (Picture: Chris Pavlich)

The share market continues to slide as the US presidential race tightens, with most sectors hit by selling.

At noon (AEDT), the benchmark S & P/ASX 200 index was down 41.9 points, or 0.79 per cent, at 5,248.6 points.

The broader All Ordinaries index was down 43 points, or 0.8 per cent, at 5,332.2 points.

Financial and energy stocks were the worst performers.

Energy stocks slipped after oil prices settled one per cent lower, with Santos down 2.4 per cent, Oil Search down 2.4 per cent and Woodside 0.9 per cent lower.

Among the major banks, ANZ was down 1.3 per cent, National Australia Bank was down 1.2 per cent, Westpac had shed one per cent and Commonwealth Bank was 0.9 per cent lower.

Wall Street’s S & P 500 index hit a four month low overnight as polls show Donald Trump and Hillary Clinton are in tight race for the White House, and investors have been factoring in a Clinton victory.

CMC Markets chief market analyst Ric Spooner said a turnaround in US polls in favour of Donald Trump had put investors — still scarred by the shock Brexit vote — on edge.

“It was always likely that investors were going to be cautious in the lead up to next week’s US election,” he said.

“However, with polls suggesting that Donald Trump’s prospects are improving that caution is translating into nervousness.”

Mr Trump’s sudden recovery in the polls has “neutralised” this week’s Fed meeting as a key driver of markets, Mr Spooner added, although the US central bank’s commentary will still be closely analysed.

Elsewhere on the local market, mining shares were a rare source of gains, with BHP Billiton up 0.2 per cent, Rio Tinto up 0.3 per cent and gold miner Newcrest 1.7 per cent stronger.

Telstra was 0.4 per cent higher.

AAP