Australian shares slid on Wednesday in a broad-based sell off, as lacklustre data from the US dampened market sentiment globally, while local investors awaited the country’s gross domestic product (GDP) data.

The S&P/ASX 200 index fell 1.4% to 7,989, as of 1225 GMT, eyeing its worst day since Aug. 5.

Market mood soured after data from the Institute for Supply Management revealed that although slightly improving in August from an eight-month low in July, US manufacturing remained muted, spurring concerns about the US economy.

While in Australia, investors await the country’s second-quarter GDP report to better gauge the monetary policy stance of the local central bank, which is anticipated to demonstrate an annual growth rate of 1%, as per LSEG data.

Any read in negative territory for the GDP could have a chilling effect on sentiment, and the share market, said Michael McCarthy, chief commercial officer at data brokerage platform Moomoo.

Australian shares hit record high; RBA cautious on inflation

Heavyweight miners led losses, falling 2.5%, to hit lowest level since Oct. 31, 2022, following weaker iron ore prices.

Sector giants BHP Group and Rio Tinto were down 1.7% and 2%, respectively.

Energy stocks dropped 2.4% to hit their lowest level since March 2022, as oil prices hit a nine-month low.

Brent crude futures fell 0.2% to $73.60 a barrel while US West Texas Intermediate (WTI) crude lost 0.28% to $70.14 per barrel.

Sector major Woodside Energy fell 2.1%, while smaller rival Santos traded 2.9% lower.

Technology stocks fell 1.8%, tracking overnight losses in their Wall Street peers.

The US Dow Jones Industrial Average fell 626.15 points, or 1.51%, at 40,936.93 points on Tuesday.

The S&P 500 lost 119.47 points, or 2.12% while Nasdaq lost 577.33 points, or 3.26%.

Shares of Xero fell 1.6%. In New Zealand, the benchmark S&P/NZX 50 index fell 0.6% to 12,451.27.