The S&P/ASX 200 index sank 2.9 per cent to 6,408.1 points, its lowest level since early June.[SYDNEY] Australian and New Zealand shares fell sharply on Thursday as investors sold off equities globally in search of safety after a drop in a US bond yield curve highlighted the risk of recession.
The inversion, as it is known, last happened in 2007 and proved to be correct when the global financial crisis hit the following year.
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