The Australian share market suffered near-across the board losses as the positive sentiment from the trade truce brokered at the G20 summit dissipates.
The benchmark S&P/ASX200 index was down 58.1 points, or 1.01 per cent, at 5713.1 on Tuesday, while the broader All Ordinaries fell one per cent.
The sell-off suggests the temporary resolution between the US and China, which resulted in an uptick in markets across the world, may have been a "band-aid solution", Pepperstone head of research Chris Weston said.
"Perhaps the damage has already been done for the global economy from the trade tariffs," he told AAP.
The energy sector was 1.4 per cent lower despite a rise in oil prices, which Mr Weston said is a reflection of investors questioning the global growth outlook.
Santos fell 2.5 per cent to $5.85 as investors cashed in on Monday's gains, while Woodside, Caltex and Oil Search were between 1.3 and 2.1 per cent lower.
The financial sector fell consistently throughout the day to close 1.2 per cent lower.
Westpac suffered the heaviest losses of the big four lenders, down 1.4 per cent to $25.89, and NAB the least, down 0.9 per cent to $24.38.
Macquarie Group fell 1.1 per cent to $116.35.
The resources sector was flat through morning trade but closed more than one per cent weaker, with South32 and BlueScope down 3.3 and 3.8 per cent respectively, while major miner Rio Tinto lost two per cent to $73.51.
BHP reversed earlier gains and was 0.6 per cent weaker at $31.62.
Consumer staples were dragged down by Coles - down 1.1 per cent to $11.49 - which has recorded six consecutive sessions in the red.
Metcash shares also weighed on the sector, tumbling more than seven per cent to $2.44 a day after the company said it saw tough times ahead for the supermarket sector.
The telecommunications sector was the only to gain on the indices, with Telstra a rare bright spot, climbing one per cent to $3.01.
Seven West Media - down 1.4 per cent to 68.5 cents - has hired Daily Telegraph deputy editor Anthony De Ceglie to head up its West Australian newspaper division.
Meanwhile, the Reserve Bank kept the official cash rate at a record low 1.5 per cent and reiterated its economic growth forecasts but is keeping a close eye on the stumbling east coast housing markets.
The Australian dollar edged higher as speculation about a slower pace of rate hikes from the Federal Reserve dragged on its US counterpart.
The Aussie was buying 73.70 US cents at 1630 AEDT, up from 73.65 US cents on Monday.
ON THE ASX:
* The benchmark S&P/ASX200 index closed down 58.1 points, or 1.01 per cent, at 5713.1
* The All Ordinaries was down 58.8 points, or one per cent, at 5797.5
* At 1630 AEDT, the SPI200 futures index was down 73 points, or 1.26 per cent, at 5698
CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 73.70 US cents, from 73.65 US cents cents on Monday
* 83.34 Japanese yen, from 83.63
* 64.79 euro cents, from 64.91
* 57.83 British pence, from 57.68
* 105.98 NZ cents, from 106.60
GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1236.54 per fine ounce, from $US1225.33 on Monday.
Share
