The benchmark S&P/ASX200 (^AXJO) closed down more than 1.5 per cent, amid growing concerns about rising coronavirus cases in Victoria and overseas.
The broader All Ordinaries index (^AORD) also finished 1.51 per cent lower, following a drop in US markets overnight.
What happened this morning?
The benchmark S&P/ASX200 (^AXJO) opened flat, falling 0.035 per cent to 6010.8 points at 10.18 AEST, after US stocks dropped on surging coronavirus cases.
The broader All Ordinaries index (^AORD) followed a similar path, dropping 0.062 per cent to 6122.90 points at 10.20 AEST Wednesday.
Today’s downtrodden start follows a flat day for stocks on Tuesday, as Victoria reported a record 191 new cases of coronavirus and embarked on a further six weeks of lockdown.
Financials were the worst performing sectors on Wednesday, with ANZ, NAB and Westpac trading down by 1 per cent, while CommBank was down by 0.67 per cent.
One Australian dollar was buying 69.42 US cents at 10:05 AEST, down from 69.52 US cents at the close of trade on Tuesday.
What happened overnight?
The US market posted losses on Tuesday, as the nation reported tens of thousands of new virus cases, with some states pushing back their reopening.
The losses came a day after the major bourse, the S&P 500, recorded its longest streak of gains this year.
"It's a little bit of a pullback after a significant five-day move in the market coupled with the normal concerns about the virus,” market strategist at Baird, Michael Antonelli, told AAP.
The Dow Jones Industrial Average fell 396.85 points, or 1.51 per cent, to 25,890.18, the S&P 500 lost 34.4 points, or 1.08 per cent, to 3,145.32 and the Nasdaq Composite dropped 89.76 points, or 0.86 per cent, to 10,343.89.
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