The Australian share market fell by its largest amount in two months amid renewed concerns about credit markets.
A warning by equipment company Caterpillar that the housing slump in the US was starting to spread to other parts of the economy saw US shares fall at the end of the week.
The domestic market followed suit this morning, with shares in most sectors losing value.
At 11.30am AEST, the All Ordinaries Index shed almost 2 per cent to 6,591.
Stocks exposed to the US economy suffered the most, with Macquarie Bank falling by about 4 per cent, while James Hardie Industries was down by almost 2.5 per per cent.
The Australian dollar was buying 88.54 US cents at 11.30am AEST.
