After closing down a marginal 0.3% yesterday, the Australian market was set to stay in negative territory following more falls on Wall Street and in Europe.

The S&P/ASX 200 index was trading at 4465.2 points early on and managed a steady incline from there despite the lack of positive data.

However, the index struggled to tip into the black and closed 0.2% lower to 4483.5 points, while the broader All Ordinaries also shed 0.2%, or 6.7 points, to 4505.2 points.

Locally, investors turned their attention to key employment data released by the Australian Bureau of Statistics.

The ABS reported the number of people employed increased by 14,500 in September.

Despite this, the unemployment rate increased by 0.3% to 5.4% in September, the highest unemployment rate since 2010.

Among the sectors, defensive stocks performed well, with health care and telecommunications both adding 0.5%.

Mining stocks extended their losses, with basic materials falling 0.8%, while technology was the worst performer, dropping 1.9%.

BHP Billiton and Rio Tinto both fell into negative territory.

BHP was down 0.7% to $A33.25, while Rio also retreated 0.7% to close at $55.42.

Shares in mineral sands miner Iluka Resources fell 6.6% to $9 after the company reported a 58% year-on-year drop in revenue.

Iron ore companies fell into the red, with Fortescue Metal Group losing 2.3% to $3.75, while Atlas Iron dropped back 4% to $1.50.

Meanwhile, shares in Lynas Corporation took a dive after announcing further delays to opening its advanced materials plant in Malaysia.

The Kuantan High Court was originally scheduled to hear an appeal against the awarding of a temporary operating licence on October 4, but it is now scheduled to deliver its decision on November 8.

Lynas fell 15.1% to 73c.

A handful of companies entered trading halts today, with Hastings Rare Metals and Hot Chili both citing a pending capital raising.