A tumble on Wall Street overnight saw the Australian share market open lower this morning. Both major indices continued to slide throughout morning trade.

At noon, the S&P/ASX200 index was down by 58 points, while the All Ordinaries fell 54.

In the US, stocks slumped on Tuesday after oil prices hit a new record high of more than $US129 a barrel, fanning inflationary worries. Lower earnings reports from major retailers Home Depot and Target Corp further depressed the market.

By close of trade the Dow Jones Industrial Average had lost 1.5 percent or 199 points, while the Nasdaq Composite slipped 23 points.

In Asian trading today, Japan’s Nikkei was down 279 points at midday, while Hong Kong’s Hang Seng fell 284.

Meanwhile in ASX news this morning, QBE Insurance Group officially withdrew its takeover offer for smaller rival Insurance Australia Group, following IAG’s rejection of the revised $8.7 billion bid.

IAG, which in April rebuffed QBE’s initial $8.1 billion approach, said late yesterday that the revised total was still too low, triggering an eight per cent slide in the company’s stock. QBE boss Frank O’Halloran said the group would continue to focus on its pipeline of acquisitions, and look at global opportunities.

In other news, Australia’s largest wheat exporter AWB today reported an 89 percent hike in first half net profit to $22 million.

AWB said the gains came as a result of a strong performance by its Landmark rural services division, driven by strong sales and improved agricultural activity after recent rains. However MD Gordon Davis cautioned that a return to dry conditions could affect second half performance. Shares in AWB rose more than three per cent on the report.

Finally, shares in mining group Macarthur Coal rose more than ten per cent this morning following the announcement that the world’s top steelmaker, ArcelorMittal, has bought a 14.9 per cent stake in the company. The European steelmaker reportedly bought all of Nathan Tinkler’s ten per cent stake in the company.

Macarthur Coal also said that discussions were continuing with an unnamed third party in relation to a potential transaction.

In ASX shareprice movements this morning resource stocks generally dropped in line with the broader market. At midday, BHP Billiton was down $1.69, Fortescue Metals fell 12 cents and Rio Tinto plunged $5.40. Woodside Petroleum was the exception added 60 cents on higher oil prices.

The banking sector also lost ground. At noon, ANZ was down 39 cents, Commonwealth Bank fell 35, National Australia Bank lost 16 cents, while Westpac slid 49.

Other blue chips were largely negative. At noon, AMP was down five cents, News Corp fell 13, Telstra added two cents, while Woolworths lost 29.