Global market trades have gone awry overnight that might cascade negative sentiments to the local market on Wednesday.

The U.S. and European markets suffered from heavy selloffs as Greek bond holders waited until the Thursday deadline before participating in the debt swap deal required by the Euro zone in restructuring Greek debts.

Major indices led by the Dow Jones Industrial Average declined 1.6% to 12759. The S&P hit 1.5% lower at 1343 and the NASDAQ went down 1.4% to 2910. Analysts noted that this is so far the S&P's biggest one-day decline since 24 November 2011.

IG Markets strategist Stan Shamu say that this development had not been good for risk-based assets with commodities and risk currencies associated with Australia.

"We expect to see cyclical stocks struggle at the open today. With heightened risk aversion and intensifying global growth fears, sectors leveraged to global growth will struggle. BHP's ADR is pointing to a 1.4% drop at the open," notes Mr Shamu.

The Aussie dollar lost significantly against the US dollar as well as the yen. Mr Shamu says that "there is now a double top on the AUD/USD chart with neckline support at 1.0597 broken. This could trigger a move down to 1.04 and below."

Investors, according to analysts, will stay at the sidelines if Greece moves to extend the deadline for its debt swaps.Prolonging the agony of Greece will most likely increase the uncertainty in the markets.

Analysts said that with the months of negotiation, the European leaders are unlikely to let this happen.

The Aussie market had been hitting lows at the open. Australia is expecting quarterly GDP figures due out at 11.30am with a range of 0.5% to 0.7% growth expected by most analysts.

IG MARKETS CHART

Market

Price at 8:30am AEST

Change Since Australian Market Close

Percentage Change

AUD/USD

1.0547

-0.0074

-0.70%

ASX (cash)

4151

-54

-1.28%

US DOW (cash)

12764

-184

-1.42%

US S&P (cash)

1344.0

-19

-1.39%

UK FTSE (cash)

5738.0

-90

-1.54%

German DAX (cash)

6617.0

-190

-2.79%

Japan 225 (cash)

9542

-96

-1.00%

Rio Tinto Plc (London)

33.56

-0.66

-1.93%

BHP Billiton Plc (London)

19.34

-0.37

-1.88%

BHP Billiton Ltd. ADR (US) (AUD)

34.10

-0.48

-1.39%

US Light Crude Oil (Apr)

104.72

-1.89

-1.77%

Gold (spot)

1674.0

-27.0

-1.59%

Aluminium (London)

2236.00

-52

-2.27%

Copper (London)

8290.00

-215

-2.53%

Nickel (London)

18745.00

-330

-1.73%

Zinc (London)

2012.00

-75

-3.59%

RBA Cash Rate to be decreased by 25bp (Apr) (%)

38.00

-

-

IG Markets provides round-the-clock CFD trading on currencies, indices and commodities. The levels quoted in this email are the latest tradeable price for each market. The net change for each market is referenced from the corresponding tradeable level at yesterday's close of the ASX. These levels are specifically tailored for the Australian trader and take into account the 24hr nature of global markets.

Please contact IG Markets if you require market commentary or the latest dealing price.