The Australian share market dived more than one per cent on Tuesday as uncertainty over European sovereign debt troubled investors on a day with few economic indicators to provide direction. The benchmark S&P/ASX200 index lost 54.4 points, or 1.17 per cent, to 4,589.1, while the broader All Ordinaries index fell 54.9 points, or 1.16 per cent, to 4,676.9 points. On the ASX24, the December share price index futures contract was 61 points lower at 4,604 points, with 28,055 contracts traded.

The losses occurred across the board with only five stocks among the top 50 stocks finishing higher. Around nine stocks were down overall for every one that was up. Telstra was the standout performer among the ASX100, adding nine cents, or 3.4 per cent, to $2.74. The major banks also contributed to the falling index. Commonwealth lost 55 cents, or 1.13 per cent, to $48.18, while Westpac fell 41 cents, or 1.89 per cent, to $21.31. National Australia Bank was down 44 cents, or 1.83 per cent, at $23.56 and ANZ Banking Group lost 14 cents to $22.34.

Among the major miners, BHP Billiton lost 74 cents, or 1.69 per cent, to $43.14 and Rio Tinto fell $1.19, or 1.4 per cent, to $83.53. Fortescue Metals, which was before the Federal Court in Perth on Tuesday in a case brought by the Australian Securities and Investments Commission, was down 22 cents, or 3.32 per cent, at $6.40. Industrials, consumer related stocks and normally defensive healthcare stocks all dropped away, some reversing earlier gains.

Among the retailers, Myer was down seven cents at $3.74. Myer said it had rearranged its management structure to support the department store chain through the next stage of its development. Harvey Norman fell seven cents to $3.04, as chairman Gerry Harvey said the federal government should place a good and services tax (GST) on products bought from overseas online retailers. Grocery and hardware wholesaler Metcash was steady at $4.37 after saying it intends to pursue its takeover of Franklins, despite the opposition of the competition regulator.

New Zealand Oil and Gas Ltd, Pike River Coal's major shareholder, lost 25 per cent after it resumed trading on Tuesday. Pike River Coal says work evaluating the effect of Friday's blast at its West Coast mine in New Zealand is down the line as it focuses on finding its 29 missing miners. Shares in NZ Oil and Gas fell 23 cents to 69 cents, while shares in Pike River Coal remain suspended from trading, last trading at 61 cents.

The spot price of gold in Sydney was $1,359.90 per ounce, down $1.83 cents from Monday's close of $1,361.73 per ounce. Newcrest Mining lost 49 cents, or 1.23 per cent, to $39.41. IM Medical was the most heavily traded stock by volume, with 285 million shares worth $286,000 changing hands. Shares in IM Medical were steady at 0.1 cents. Preliminary market turnover was 3.08 billion shares worth $5.74 billion, with 371 up, 756 down and 385 unchanged.

The Australian dollar was lower late in Asia as the initial bounce in risk sentiment on the back of a bail out package for Ireland fizzled out. Causing particular uncertainty for currency dealers is a looming Irish election and views Portugal could be next on the rescue list. The Australian dollar traded at $0.9858, down from $0.9927 late Monday. Against the Japanese yen, the currency traded at 82.175, from 82.80.