ASX 200 sees biggest fall in three weeks; iron ore tumbles to six-month low, Webjet up on profit return

Biggest one-day drop in three weeks. Webjet rallies on strong outlook. Universal Store hits record low. SkyCity narrows guidance. Iron ore at six-month low. UBS rates Qantas a 'buy'.

Global equity markets are in a wait and watch mode as US debt limit discussions continue. Picture: Gaye Gerard

Welcome to the Trading Day blog for Wednesday, May 24. The Australian sharemarket saw its biggest one-day fall in three weeks as continue concerns about sluggish demand for iron ore weighed on the materials sector. 

The S&P/ASX 200 index was down 0.6 per cent, or 46.10 points, to 7213.80.

Futures attached to the S&P 500, Dow Jones and Nasdaq were slightly higher ahead of this evening's session as traders await the latest on the US debt ceiling and minutes from the FOMC.

The dollar was buying US65.90c at the close.