The corrective move that many pundits had been calling for recently hit the international leaderboard overnight, sending all major markets sharply lower.
A report showing Europe’s economy contracted 0.3% last quarter was the catalyst for the selloff, which couldn’t have come at a worse time on the back of China’s lowered growth target in the previous session.
A market that was already concerned about global growth did not want to see such a number.
In Europe the FTSE shed 109 points (-1.9%), whilst the French CAC (-3.6%) and German DAX (-3.4%) were belted even harder.
Stateside, the Dow Jones shed 197 points (-1.5%) to settle at 12765, whilst the S&P 500 (-1.6%) and tech-heavy Nasdaq (-1.3%) endured similar declines.
It was the third losing session in the US, with the S&P suffering through its worst decline so far this year.
The news wasn’t much better for commodities, which experienced huge falls amid fears of a slowdown in the world economy.
Gold slumped over one percent, joining base metals, which extended their recent declines on the back of the disappointing eurozone data.
The risk off environment saw investors pile their money into traditional safe-havens, the US dollar and yen. The renewed Greek concerns weighed heavily on the euro, which fell to a three week low against the greenback.
The Aussie dollar wasn’t spared from the carnage, sinking below US$1.06 despite the RBA leaving interest rates on hold yesterday.
In company news, Amcor has made a $238 million bid for Asian flexible packaging products manufacturer, Aperio Group.
On the economic front, Australian final quarter GDP is due for release at 11:30am, AEDT.