Global markets were smashed again overnight, as concern that new Greek political leaders will back out of bailout agreement sent the nation's benchmark index towards a 20-year low.

It wasn't much better throughout the rest of Europe, with the FTSE 100 slumping 101 points (-1.8%) to settle at 5555, whilst the CAC (-2.8%) and DAX (-1.9%) were also sharply weaker.

Stateside, the Dow Jones shed 76 points (-0.6%) to settle at 12932, whilst the S&P (-0.4%) and Nasdaq (-0.4%) endured similar declines.

The Aussie dollar fell sharply and is now trading back below the US$1.01 handle, whilst the euro weakened for a seventh consecutive session against the US dollar as Greek politicians struggled to form a new government after elections over the weekend raised the prospect of the country withdrawing from the currency bloc.

Commodities fell, nearly erasing this year's gains, as the struggle by Greek political leaders to form a coalition underscored growing concern that the region's debt crisis will worsen, dimming prospects for raw-material demand.

Oil fell for a fifth day as Saudi Arabian Oil Minister Ali al-Naimi said prices should come down and the euro weakened against the dollar after election results in Greece and France.

Oil slipped to a three-month low as al-Naimi said prices are "still a little bit high" and that Saudi Arabia is storing crude.

Crude for June delivery fell 93 cents, or 0.9 percent, to settle at $97.01 a barrel on the New York Mercantile Exchange. The price has fallen 8.6 percent in a five-day losing streak, the longest since Feb. 2.

Elsewhere, copper lost 1% and gold slumped 2.1%, settling at US$1608 an ounce.

There is no major local data due out during today's session.

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Morning Market Analysis: The Rot Continues is a post from: Australian Stock Report Market Pulse Blog