Australian markets open in red

The Australian market opened in the red on Wednesday after commodity prices took sharp falls on global economic uncertainty overnight.

The benchmark S&P/ASX200 index dropped 1.16 percent to 5,516.8 points, while the broader All Ordinaries index slipped 1.09 percent, to 5,503.4 points.

Materials dropped 1.8 percent on the back of falling commodity prices as speculation mounts the iron ore could test a 10-year low of 46.70 U.S. dollars in coming weeks.

Nickel fell 9 percent and copper has hit a six-year-low in overnight trade.

BHP Billiton dropped 1.75 percent, rival Rio Tinto fell 1.12 percent and Fortescue Metals retreated 3.36 percent.

Energy stocks declined 1.15 percent with Woodside Petrolium down 1.07 percent and Santos slipping 1.56 percent.

Financials also dropped 1.24 percent at the market open, led by Westpac Bank, down 1.42 percent. ANZ slipped 1.21 percent and the Commonwealth Bank of Australia (CBA) retreated 1.35 percent.