SYDNEY, Dec 21 (Reuters) - Australian shares were set to start lower on Monday in the wake of steep falls on Wall Street and as prices for many of the country's major commodities remain under pressure despite a modest bounce in iron ore.
The local share price index futures YAPcm1 fell 0.8 percent to 5,021, an 85-point discount to the underlying S&P/ASX 200 index .AXJO close of 5,106.
The benchmark index had ended Friday with a slight gain after a very volatile week saw it fall to the lowest in two-and-a-half years at one point. That trough of 4,909 will act as major chart support and a target for bears.
New Zealand's benchmark NZX 50 index .NZ50 fell 0.2 percent in thin early trade.
There was no end to BHP Billiton's BHP.AX troubles in Brazil after a judge froze its assets after determining joint venture Samarco was unable to pay for damage caused by the bursting of a dam at its mine last month.
For a summary of overnight action across global markets, double click on AU/CALL
For a digest of the day's business stories in Australian newspapers, double click on PRESS/AUB