Australian stocks start weaker, S&P 200 sinks 21pts, All Ordinaries sheds 20.3pts

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SYDNEY: The Australian stocks started lower on the back of unstable leads from worlds stocks, as more sluggishness in key commodity value affected heavily on mining stocks.
At the 10.15am (AEDT) official market open, the benchmark S&P/ASX200 index was down 21 points, or 0.39 per cent, at 5,332.6 points, while the broader All Ordinaries index lost 20.3 points, or 0.38 per cent, to 5,311.9 points.
CMC chief market strategist Michael McCarthy said plunging commodity prices are driving fears of a further deterioration in global demand, which was in turn driving investor selling of shares.
Overnight, copper prices suffered their biggest one-day decline in over three years, while Citigroup slashed its forecast for iron ore in 2015 to $US58 a tonne, which would represent a near six-year low for the commodity.
“Although there is ample evidence that it is supply increases that are punishing industrial commodities, an emotional response to the dramatic drops saw markets fall around the globe.
“Weaker than forecast US retail sales in December added to the gloom.”
US stocks endured a volatile session, with the Dow Jones Industrial Average near its lows of the year, finally closing 1 per cent weaker after the Federal Reserve said the US economy had continued to expand.
After steep falls overnight on the London Stock Exchange, BHP Billiton and Rio Tinto both fell sharply, leading the broader materials space down 1.25 per cent at the open.
BHP Billiton retreated 1.43 per cent to $26.81, while rival Rio Tinto lost 1.98 per cent to $54.44.
Fortescue Metals fell 1.28 per cent to $2.31.
Financial stocks also retreated, falling 0.45 per cent as a sector.
ANZ lost 0.54 per cent to $31.50, while Commonwealth Bank retreated 0.14 per cent to $83.56.
National Australia Bank shed 0.39 per cent to $33.58 while Westpac lost 0.72 per cent to $32.89.
Consumer staples shed 0.26 per cent as a sector.
Woolworths slipped 0.5 per cent to $29.85, while Wesfarmers lost 0.14 per cent to $42.22.
The weakness was partially offset by a rally in energy stocks, up 1.47 per cent on the back of a 5 per cent surge in oil prices.
Santos added 3.33 per cent to $7.605, while Woodside Petroleum gained 0.34 per cent to $35.66, after achieving record production in 2014.