ASX 200 drops as commodity prices fall; BHP, Rio Tinto and Fortescue among the hardest hit

Fresh recession jitters sends ASX lower as materials and energy plunge. Megaport and Zip surge,  St Barbara falls sharply, CSL hits six-month high and Bitcoin below $US20,000.

Falling oil prices, an indicator of slowdowns ahead, are worrying equity investors. Picture: NCA Newswire/Gaye Gerard

Welcome to the Trading Day blog for Wednesday, July 6. The Australian share market snapped a two-day winning streak to end lower as recession jitters spark heavy selling of materials and energy stocks.

The S&P/ASX 200 index closed down by 0.5 per cent to 6594.50, after the share market ended higher on Tuesday following another 50 basis point rate hike by the Reserve Bank, playing catch-up as it scrambles to contain the inflation wildfire spreading through the economy.

On Wall Street, the Dow Jones Industrial Average closed down 0.4 per cent while the S&P 500 reversed earlier losses to end 0.2 per cent higher while the technology-focused Nasdaq Composite Index gained 1.8 per cent.

The US 10-year bond yield fell to 2.81 per cent.

Fears about an economic slowdown were fuelled by falling oil prices with the global benchmark Brent crude sliding 9.5 per cent to $US102.77, on pace for its largest single-day drop since March, while West Texas Intermediate, the US standard, fell 8.2 per cent to below $US100 for the first time since May to close at $US99.50.

Iron ore futures price rose 3.2 per cent to $US113.42 per tonne.

The Aussie dollar fell and was near US67.95c at the US close, but it was the euro suffering the most, diving to a two-decade low on soaring energy prices.