The Australian share market fell to its lowest point in almost a year as investors fretted over the weak US economy.
At the 1615 AEST close, the benchmark S&P/ASX200 index had fallen 100.8 points, or 2.27 per cent, to 4,332.8 points while the broader All Ordinaries index was down 102 points, or 2.26 per cent, at 4,408.3 points.
On the ASX 24 at 1615 AEST, the September share price index futures contract had dumped 102 points to 4,293 points, with 46,355 contracts traded. US stocks fell heavily overnight as poor economic data overshadowed a congressional deal to raise the country's debt ceiling and avoid default.
The benchmark Dow Jones Industrial Average fell 2.2 per cent. IG Markets research analyst Ben Potter said the local market had endured a "pretty ugly" day's trading. "It's all on the back of disappointing stuff out of the US," he said.
"It seems the (US) debt issue has been forgotten about already and everyone's focusing on the terrible growth data (in the US) - we had GDP on Friday, manufacturing on Monday and last night, personal spending dropped for the first time in two years.
"So everyone is seriously questioning whether the US economy is actually recovering at all and if it's headed for a double-dip recession." Mr Potter said disappointing Australian retail figures on Wednesday had affected the Australian dollar but had little effect on the share market.
Retail spending fell by 0.1 per cent in June, according to figures from the Australian Bureau of Statistics.
Economists' forecasts had centred on a 0.4 per cent rise in retail sales in the month.
Mr Potter said the outlook for markets was cloudy, but given that US markets had been down for eight days in row, it could be time for a relief rally.
In the resources sector, global miner BHP Billiton dumped $1.42, or 3.42 per cent, to $40.15, while Rio Tinto retreated $2.45, or 3.06 per cent, to $77.60.
Among the major banks, National Australia Bank lost 77 cents to $23.20, Westpac shed 27 cents to $20.10, ANZ was off 53 cents at $20.29 and the Commonwealth Bank surrendered 87 cents to $48.55.
In the gold sector, Western Australian miner Ramelius Resources was eight cents higher at $1.495 after it forecast a more than four-fold rise in full year gross profit on the back of soaring production and gold prices.
At 1627 AEST, the price of gold in Sydney was $US1,662.30 per fine ounce, up $US37.33 from $US1,624.97 at close on Tuesday.
Residential developer AVJennings was steady at 45 cents after it posted a 34 per cent lift in annual profit, but has flagged softening market conditions ahead.
Preliminary national turnover was 2.35 billion shares worth $6.39 billion, with 921 stocks down, 212 up and 333 unchanged.
Share
