There was a sea or red on global markets overnight amid intensifying concerns about falling commodity prices and slowing growth.
US stocks closed sharply lower as traders fretted about the likelihood Chinese leaders will lower the nation’s economic growth target from 7.5%.
A decline in US economic activity in August, measured by the Chicago Federal Reserve, combined with a fall in existing home sales, contributed to the sour mood in Europe and the US.
Most commodities were hurt by comments from China’s Finance Minister, who warned his government won’t provide additional stimulus simply because of changes in any individual economic indicator.
Oil extended its slide as sluggish demand and ample supplies outweighed expectations of a cut in output from OPEC. In metals trading, silver hit a four-year low whilst gold edged higher amid renewed safe haven demand.
In currency markets, haven flows supported the yen, whilst the Aussie slid to a seven-month low versus the greenback amid worries over China and calls for another rate cut by the RBA.