Shares on Wall St and in Europe rose overnight, after the US Federal Reserve indicated economic growth was still happening, though at a slower rate.

Equities on Wall Street and across Europe fell after a US home sales fell a record 27 per cent in July.

Stocks in the US dropped for a third straight day as a worse-than-expected report on US jobless claims.

The local sharemarket has dived in early trading.

The Federal Reserve has voted to buy US Govt debt in a fresh bid to spur the world's biggest economy.

World shares have fallen on unexpectedly bad US jobs data.