Aussie share market plunges by more than two per cent

THE Australian share market has closed 1.5 per cent lower, following a slump on Wall Street overnight.

THE Australian share market has closed 1.5 per cent lower following a slump on Wall Street overnight, reversing Wednesday’s gains.

At the close on Thursday, the benchmark S&P/ASX200 index was 78 points, or 1.56 per cent, lower at 4,909.4, while the broader All Ordinaries index was down 77.5 points, or 1.54 per cent, at 4,964.1.

On the ASX 24, the March share price index futures contract was 69 points lower at 4,869, with 38,096 contracts traded.

The drop reversed Wednesday’s gains, which followed eight straight sessions in the red.

Earlier in the day, he big miners Rio Tinto and BHP Billiton, along with the big four banks and retail giants Woolworths and Wesfarmers all suffered heavy falls shortly after trading began at 10am AEDT.

The plunge was sparked by widespread falls on Wall Street, with the S&P500 sinking 2.5 per cent to close below 1,900 points for the first time since September.

US investors were worried about falling energy prices, disappointing corporate earnings and the global economy.

The Dow Jones industrial average also shed more than two per cent while the tech-heavy Nasdaq Composite dropped by over three per cent.