The Aussie market has taken a pounding so far this morning, with a large part of the selloff due to the poor trade balance data which came out of China at 1pm.
The XJO is currently 25 points underwater, at 4285.
Most sectors are weaker, with telcos, IT, and utilities stocks bearing the brunt of the selling.
In local economic news, the RBA released its quarterly monetary policy statement in which it lifted its underlying inflation forecast by 0.25% to 2.5% for the year to the end of December.
The central bank also increased its GDP growth forecasts by 0.50% to 3.5% over the same period.
However the RBA did note that “the economic and financial events in the euro area remain a significant downside risk
In company news, Crown has climbed 1.5% after reporting a full year net profit of $513.3 million, a 53% increase on the prior year.
Elsewhere, Sedgman has jumped 6.8% after announcing that it expects FY12 net profit to be in the range of $36 million and $37 million, up from the $26 million it reported in FY11.
Around the region, Asian markets are all weaker; the Hang Seng (-0.7%0 and Nikkei (-0.6%) are amongst the hardest hit.