Australian stocks open 1.8 percent lower

SYDNEY – Australian stocks opened 1.8 percent lower Monday after Greece missed a deficit target set by European leaders as part of its bailout deal, deepening fears of a default that would panic world markets.

At 10.10am (2310 GMT) the benchmark S&P/ASX 200 was 70.5 points or 1.76 percent lower at 3,938.1 points after Athens said its deficit should drop to 8.5 percent of GDP in 2011 — short of the 7.4 percent set by the IMF and EU.

The commodities-linked Australian dollar was trading at 96.92 US cents, down from the 97.66 US cents seen late Friday following falls on the London Metal Exchange linked to growing fears of a renewed global recession.