The Australian share market is trading lower, led down by the big miners on concerns over iron ore prices.
IG Markets market strategist Evan Lucas said the local bourse was being dragged back by iron ore miners.
“Overnight, in the US, (investment bank) Goldman Sachs actually downgraded their outlook on iron ore quite heavily,” Mr Lucas said.
Goldman Sachs has forecast that iron ore prices would fall from $US139 per tonne in 2013 to $US80 per tonne in 2015.
Mr Lucas said Goldman Sachs had also downgraded the London listings of dual-listed BHP Billiton and Rio Tinto, sending those stocks lower in the United Kingdom.
“That has pushed through to us here today,” he said.
Mr Lucas said there was concern that there would be increased use of scrap metal in China, which would lead to lower steel production.
In the resources sector at 1201 AEDT on the local bourse, global miner BHP Billiton had shed 96 cents, or 2.78 per cent, to at $33.59, and Rio Tinto fell $1.91, or 3.26 per cent, to $56.75.
Fortescue Metals reversed 17 cents, or 4.37 per cent, to 3.72.
Atlas Iron dumped 4.75 cents, or 3.85 per cent, to $1.1875.
Among other stocks, retailer David Jones was up 9.5 cents at $3.055 despite its first half profit falling 14 per cent in challenging trading conditions.
Sydney Airport firmed two cents to $3.18 after it reported a 2.2 per cent rise in passenger numbers in February.
On Wall Street in the US on Tuesday, the Dow Jones Industrial Average gained 0.03 per cent.
KEY FACTS
* At 1207 AEDT on Wednesday, the benchmark S&P/ASX200 index was down 38.1 points, or 0.76 per cent, at 4,949.3 points.
* The broader All Ordinaries index was down 38.4 points, or 0.77 per cent, at 4,966.0 points.
* The March share price index futures contract was down 42 points at 4,948 points, with 70,802 contracts traded.
* National turnover was 903.8 million securities worth $1.86 billion.
