The share market has started trade in negative territory, although losses are far smaller than steep falls in the US.
After the US election result, which maintained the status quo of a Democratic president and Senate but Republican House, the Dow Jones Industrial Average dropped 2.4 per cent on fears the nation will not avoid an impending fiscal cliff of tax rises and spending cuts.
After the US slide, the local market has been dragged down by losses in mining, energy and bank stocks.
The All Ordinaries Index was down 1 per cent, to 4,491 shortly before 11:00am (AEDT), and the ASX 200 index has also lost 1 per cent to 4,473.
The major miners were all at least 1 per cent lower: Rio Tinto was down 1.6 per cent; BHP Billiton was down 1.2 per cent; and Fortescue was off nearly 2 per cent to $3.98.
Rare earths miner Lynas Corporation was is in a trading halt ahead of a Malaysian court decision about whether its processing plant in that country can go ahead.
The big banks were also under pressure - ANZ has dropped 3.9 per cent as it trades without the right to its latest dividend.
The three other major banks were off between 0.2 and 0.7 per cent.
The dollar was slipping against the greenback, buying 104.04 US cents.