Australian Shares Plummet for Third Straight Day Amid Inflation and Rate Worries

Australia's share market continued to suffer on Thursday, despite clawing back from its worst day in almost six months.

The S&P/ASX200 fell by 92 points, or 1.03 per cent, to 8,819.4, while the broader All Ordinaries lost 94.6 points, or 1.04 per cent, to 9,008.3.

The decline was attributed to inflation and interest rate worries, as traders await key US inflation data due overnight on Thursday and Friday.

Closer to home, interest rate expectations have risen, with markets now putting a September hike at over three-quarters' chance.

The Australian 10-year bond yield and the three-month Bank Bill Swap Rate (BBSW) hit multi-year highs, reaching 4.6248 per cent - its highest level since late 2011.