Local stocks drop on Wall Street woes

The Australian share market has extended its losses, as a 4%-drop on US markets overnight prompted investors to dump financial and mining stocks.



Investors and consumers fear a global economic slowdown could take root as banks stop lending to each other and to companies, triggering job losses and falling demand.

''The evidence you see from the average man in the street who runs a business, he will tell you that his turnover is down 30% ... it is not just a bank problem now, far from it,'' David Spry, research manager from Benson Futures.

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