Australian stocks are trading at one month lows after global markets were heavily sold off overnight, due to concerns about Eurozone debt and Chinese inflationary pressures.

Energy and resource stocks are the biggest drags, as investors bailed out of commodities overnight on the concerns. The price of copper slumped by 6pct while oil eased by 3pct on a stronger greenback. Shares in Rio Tinto (RIO) are down 2.9pct at lunchtime to $83.91 while Santos (STO) has slumped 2.6pct to $12.76.

Financial stocks are also lower, with the NAB (NAB) down 1.3pct to $24.45 and Westpac (WBC) off 1.7pct to $21.82.

Telstra (TLS) has shed 0.8pct to $2.56.

The Australian dollar is trading lower against the US dollar as heightened worries about Eurozone debt saw investors flee to the safe haven of the greenback. At 11.40am AEDT the Aussie is worth US97.57c, £0.6147 and €72.4c.