The Australian share market closed weaker, in line with a global sell-off following a downbeat assessment of US growth by Federal Reserve chairman Ben Bernanke. The benchmark S&P/ASX200 index was down 32.1 points, or 0.71 per cent, at 4,500.5, while the broader All Ordinaries index fell 29.5 points, or 0.64 per cent, to 4,561.3.

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On the ASX 24, the September share price index futures contract was 44 points lower at 4,487, with 30,196 contracts traded. Energy, materials and telco stocks led the local market. Japan's Nikkei 225 index fell 0.34 per cent and the Hong Kong's Hang Seng dropped 0.74 per cent.

The local market traded sideways throughout Thursday's session on moderate volume, and partly reflected abnormal activity, such as options expiry and end of financial year trading activities. Telstra shares fell seven cents, or 2.31 per cent, to $2.96 after the news that it had reached an $11 billion agreement to participate in the national broadband network. Oil majors slipped, with Oil Search losing 18 cents, or 2.71 per cent, to $6.45. Woodside fell 69 cents, or 1.68 per cent, to $40.40 and Santos dropped 11 cents or 0.82 per cent to $13.37. Market heavyweight BHP Billiton lost 42 cents to $42.04, while Rio Tinto firmed 21 cents to $80.00. Gold major Newcrest Mining backtracked 20 cents to $36.85. The spot price of gold in Sydney was trading at $1545.80 per fine ounce, 92 cents higher than Wednesday's close of $1,544.88.

Banks and financials were mostly lower, with Westpac leading the big four banks lower after losing 39 cents, or 1.81 per cent, to $21.13. Murchison Metals fell 4.5 cents to 76.5 cents before requesting a trading halt after consortium partner Sinosteel Midwest Corporation shut down a mine in WA, putting proposed commodities port at Oakajee in doubt. Shares in Gindalbie Metals Ltd, a foundation customer lined up for Oakajee, plummeted 5.5 cents to 84 cents. In other news on Thursday, rail operator QR National Ltd has renewed a coal haulage contract with Stanwell Corporation Ltd. The transporter's stock firmed two cents to $3.29. Qantas shares fell three cents, or 1.64 per cent, to $1.80 after announcing it expected full year earnings to rise to at least half a billion dollars on its profitable domestic business. Preliminary national turnover was 2.34 billion shares, worth $5.55 billion, with 459 shares up, 662 down and 413 unchanged.

The Australian dollar slid in late U.S. trading and stayed lower in Asia action Thursday on a downbeat economic view from the U.S. Federal Reserve. Setting off a selling of riskier assets such as the local currency and a boost to bonds globally, Federal Reserve Chairman Ben Bernanke said that even as another round of quantitative easing is unlikely, there is an awful lot of uncertainty about the pace of U.S. economic growth. After trending higher into the Fed statement, the Australian dollar quickly dropped, reaching a low of US$1.0533 on the day. The Australian dollar was at $1.0551, down from $1.0610 late Wednesday. Against the Japanese yen, the Australian dollar was at 84.86, down from 85.16.

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