A SIX-DAY losing streak has wiped almost $80 billion off the Australian sharemarket as Europe's debt woes continue to rattle investors.
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The benchmark S&P/ASX 200 Index fell 59.4 points, or 1.5 per cent, to 3984.3, dropping below 4000 for the first time since October 5.
Investors grew impatient after Germany's chancellor again ruled out joint euro borrowing.
EL & C Baillieu Stockbroking director Richard Morrow said Australian shares were operating within an ''incredibly weak'' global setting.
He said investors were clinging to bad news to justify selling shares. ''The mood is negative at the moment, all news is bad.''
He said national turnover was inflated by the expiry of exchange-traded options, and the market was much less active than it appeared.
Mr Morrow said the US market would open lower following the Thanksgiving holiday, but it was unlikely to affect the local market until Tuesday. ''There won't be many participants in the US market, most people would have taken the sensible option and gone on holiday for the long weekend.''
The Dow Jones Industrial Average fell 236.17 points, or 2.05 per cent, on Wednesday to finish at 11,257.55.
Shares in oil and gas producer Woodside tumbled after it downgraded its 2011 oil production targets. Woodside was down $2.06, or 5.8 per cent, at $33.36.
At yesterday's shareholders' meeting, Myer chairman Howard McDonald said the Reserve Bank's recent interest rate cuts would help improve consumer confidence during Christmas trading.
But the retailer reiterated that net profit would decline as much as 10 per cent this financial year. Myer shares fell 6¢, or 2.6 per cent, to $2.28. Rival David Jones fell 4.6 per cent.
Billabong also experienced a disappointing day, with its shares down 11¢, or 3 per cent, at $3.53.
The big four banks all finished lower, with Commonwealth Bank hit hardest, down 2.6 per cent at $45.39.
BHP Billiton lost 48¢, or 1.39 per cent, to $34.05, while Rio Tinto slipped 46¢ to $61.95.
