The share market is lower after falling oil prices weighed on markets in the US and Europe.

“We’re just tracking all the weakness that we’re seeing in global markets in general,” IG market strategist Stan Shamu said.

“The current weakness in oil prices continues to cause turmoil.”

The resources and energy sectors were lower, along with the banks and retailers.

Wall Street dropped 1.79 per cent on Friday, as US oil prices fell to a fresh five year low of $US57.81 a barrel.

Oil and gas producer Woodside Petroleum was down 32.5 cents at $34.275, Santos was down eight cents at $7.08 and Oil Search was down five cents at $7.10.

BHP Billiton had dropped 53 cents to $27.93, Rio Tinto was down $1.06 at $52.61 and Fortescue Metals was 1.5 cents weaker at $2.405.

Investors are waiting on the 1230 AEDT release of the federal government’s mid-year economic and fiscal outlook, which will outline a worsening budget situation.

Mr Shamu said the budget outlook was likely to put downward pressure on the Australian dollar, which may be positive for the share market.

In the banking sector, Westpac was down 37 cents at $31.68, ANZ had dropped 30 cents to $30.70, Commonwealth Bank was down 55 cents at $81.19 and National Australia Bank was 37 cents weaker at $31.58.

Making news, data management business Recall Holdings was up $1.25, or 19.5 per cent, to $7.65 after it rejected a $2 billion-plus takeover offer from US logistics giant Iron Mountain.

KEY FACTS

* At 1204 AEDT on Monday, the benchmark S&P/ASX200 index was down 43 points, or 0.82 per cent, at 5,176.6 points.

* The broader All Ordinaries index was down 42.9 points, or 0.83 per cent, at 5,154 points.

* The December share price index futures contract was 39 points lower at 5,178 points, with 32,898 contracts traded.

* National turnover was 530 million securities worth $1.25 billion.