The Australian sharemarket has suffered its worst quarter in four years, and fund managers say the volatility that characterised it is likely to continue into the fourth quarter, led by the global themes of China and US interest rates.

The benchmark S&P/ASX 200 closed the third quarter 8 per cent lower, accelerating the previous quarter loss of 7.3 per cent. It marks the worst quarter since the European debt crisis in 2011, when the sharemarket fell 13 per cent.