The Australian stock market was lower at midday as doubts about the recovery in the global economy dragged down miners and banks.

At Tuesday noon AEST, the benchmark S&P/ASX200 index lost 23.6 points or 0.53 per cent at 4429.1 points. The broader All

Ordinaries Index, meanwhile, descended to 4460.8 points after dropping 22.3 points or 0.50 per cent.

Of the sectors, health edged up 0.37 per cent. Energy, materials and financials, which shed 0.93, 0.87 and 0.5 per cent, respectively were the worst performers among all sub-indices in the red.

On the Sydney Futures Exchange, the September share price index futures contract slid down 30 points at 4416 on volume of 17,663 contracts.

The Australian bourse was weaker at noon, although it had regained some of the day's initial losses, according to RBS Morgans private client adviser Craig Walker from Brisbane.

"The Dow did not provide a very good lead and even now we are still seeing a bit of weakness."
Wall Street fell in the year's lightest volume overnight as fears about the pace of economic recovery overshadowed data showing an increase in consumer spending and income.

Mr Walker said mining giants BHP Billiton and Rio Tinto, along with three of the four major banks, are pulling the market back a bit.
BHP dived to $37.24 after losing 65 cents or 1.72 per cent. Rio Tinto was likewise lower, dropping 81 cents at $70.20.

Most of the major banks were weaker by midday.
ANZ slumped 14 cents at $22.81, while National Australia Bank dropped 17 cents at $23.38. Westpac was 29 cents lower at $22.04.
Commonwealth Bank was the only one to combat the negative sentiment, with its stocks rising 2 cents at $50.57.

BHP was being dragged lower on the outlook for the global economy, Mr Walker said.

''It is just continuing on certainty about the global economic recovery, and that we have an unresolved election is not helping BHP's cause.''

''There are some pretty big economic numbers out (in the US) later this week and some people are just sitting on the fence and will probably sit back and see.''