Shares closed 0.5 per cent lower over a wild Wednesday that saw commodity and bond prices flash warnings around the potential for a looming recession.

The energy sector plunged 5.8 per cent, with the materials sector down 5 per cent. Gold, oil, iron ore, and copper all traded lower over the day.

Bond yields also continued to fall as investors bought treasuries to shelter from the worst impact of an economic downturn. Australian 10-year treasuries yielded 3.39 per cent at the closing bell and have tumbled over the past fortnight. US 10-years offered 2.8 per cent.

The best-performing sector was tech. It added 3.1 per cent.