AAP

Australian shares have tumbled amid wider global uncertainty, diving into the red during a bleak open to the session.

Gold has risen as a slide in the US dollar makes bullion more attractive for holders of other currencies, while some investors have taken cover as stocks globally slipped into the red ahead of the US Federal Reserve's two-day policy meeting.

Oil prices fell about one per cent overnight on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand.

Wall Street's major indices have slid more than two per cent, with the benchmark S&P 500 closing at its lowest level in 14 months, on concerns of slowing economic growth before a decision from the Federal Reserve this week on the course of interest rate hikes.

The Australian share market has closed higher after an afternoon rally led by the materials sector.

India have crashed to 2-15 after being set a target of 287 runs to win the second Test and take an unassailable 2-0 series lead in Perth, where a demonic pitch has Australia's quicks licking their lips on day four.

BHP is handing back the last of the $US5.2 billion from the sale of its onshore US assets through a special dividend.

Australian shares are flat at the start of a new trading week with early losses for the big banks cancelling out gains for mining and utilities stocks.

Wall Street's three major indexes tumbled and the Dow confirmed a correction as weak data from China and Europe stoked fears of a global economic slowdown.

Oil prices have dropped about two per cent, weighed down by falling US stock markets, while weak economic data from China pointed to lower fuel demand in the world's biggest oil importer.

Gold has fallen to its lowest in over a week and was on track to mark its biggest weekly decline in more than a month, as the dollar climbed on robust US economic data ahead of a US Federal Reserve meeting next week.

The Australian share market lost more than one per cent, with financial stocks weighing heavily as renewed fears about a global growth slowdown gripped investors pessimistic about dour economic data from China.

Australia's openers made a mockery of pre-match expectations before India's four-pronged pace attack fought back to reduce the hosts to 3-145 at tea on day one of the second Test in Perth.

Wesfarmers has appointed mergers and acquisitions expert Mike Roche to its board as it seeks out fresh opportunities, after offloading Coles and exiting the UK hardware market.

Commonwealth Bank has signed up to Apple Pay, ending ANZ's long run as the only big four bank in Australia to offer the service.

Australian shares are down at the open, with the heavyweight financial sector dragging and supermarkets Coles and Woolworths also losing ground.

Oil prices climbed one per cent overnight after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought.

Gold eased to its lowest level in nearly one week overnight as the dollar rose and investors latched on to gains in global stocks, while palladium touched record highs on expectations of higher demand for the auto-catalyst metal.

Banking and mining stocks have lifted the Australian share market higher, but gains were limited by a slump from the telco sector after the competition watchdog raised concerns over TPG's planned merger with Vodafone Australia.

Investors have shunned Vodafone Australia and TPG Telecom after the competition watchdog raised concerns that their merger into a $15 billion telco giant could mean higher mobile prices for consumers.

The Australian share market has opened higher but telco stocks are keeping the gains in check after the competition watchdog raised concerns over TPG Telecom's planned merger with Vodafone Australia.

Oil prices have risen, bolstered by export cuts from Libya and planned OPEC-led production cuts, pulling back briefly after the United States reported a smaller-than-expected crude inventory drawdown.

Gold prices edged higher as the dollar slipped overnight and expectations for the number of US interest rate hikes next year dimmed, increasing the appeal of non-interest yielding bullion.

US stocks have closed up, though well below their session highs as investors pulled back in the last few minutes of trading despite optimism about US-China trade relations and some reassuring signs in British politics.

The Australian share market has closed higher, buoyed by a surge in banking and energy stocks as trade tensions ease and investors cash in on cheaper shares.

The consumer watchdog has launched a new public inquiry into the conditions under which rival telcos use Telstra's existing copper network.

Westpac shareholders have handed the bank a first strike on executive pay in protest over bonus cuts they say did not go far enough.

Australian shares have edged higher despite volatile overnight trade, with energy, resources and healthcare stocks posting solid early gains.

Gold is holding steady near a five-month peak as expectations for fewer interest rate hikes by the US Federal Reserve next year supported the non-yielding precious metal.

Oil futures pared most of their gains overnight as stock markets turned negative on worries about a possible US government shutdown.

The S&P 500 and the Dow have closed marginally lower after volatile trading as investors swivelled their focus between China-US trade talks, President Donald Trump's threat to shut down the US government and political uncertainty in Britain.

Mining and health care stocks lifted the Australian share market higher, but the gains did little to recover the significant losses inflicted during Monday's trading.