The local market is running with the bearish leads provided by Europe overnight, with the XJO currently trading more than 1% lower.
The selloff is broad based with every sector underwater; energy, IT and industrials are the hardest hit.
In company news, NAB is reportedly in talks with NBNK Investments to merge its UK operations as part of a joint bid for over 600 branches of Lloyds Banking Group.
Around the region Asian markets are all trading lower; the Hang Seng and Nikkei are down approximately 1% each.