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asxSYDNEY: Australian stocks slumped 2.63 percent on Thursday after the US Federal Reserve painted a grim picture of the American economy.

At the close, the benchmark S&P/ASX 200 was down 106.9 points at 3,964.9.

It followed overnight measures by the Federal Open Market Committee to support the US economy leaving investors cold. At the same time, the Fed pointed to "significant downside risks to the economic outlook".

Copyright AFP (Agence France-Presse), 2011

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