Aust stocks weaker at noon

Local market drops as fall in iron ore price weighs on major, junior miners.

The Australian sharemarket is weaker at noon as a fall in the iron ore price weighs on the materials sector.

At 12.05pm (AEST), the benchmark S&P/ASX200 index dropped 46.4 points, or 0.85%, to 5,382.4 points, while the broader All Ordinaries index shed 45.6 points, or 0.84%, to 5,362.3 points.

The iron ore price fell further overnight and is now at its lowest point since September 7, 2012, putting pressure on the major and junior miners.

Official data this morning showed a spike in business finance in April, while personal finance fell.

The fall in the sharemarket also follows downbeat Wall Street leads as escalating violence in Iraq pushed US oil prices to nine-month highs.

Materials fell 1.46% as a sector, with the iron ore names in the red.