Australian stocks have closed down one per cent as the big miners and other resources-linked companies led the broader market lower.

The benchmark S&P/ASX200 index ended down 45.9 points, or 1.07 per cent, at 4,246.4 points, while the broader All Ordinaries index fell 46.1 points, or 1.05 per cent, to 4,327.6 points.

On the ASX 24, the June share price index futures contract was 52 points lower at 4,255 points, on volume of 32,071 contracts traded.

The big market sectors all posted hefty declines, according to IRESS data.

Metals and minerals stocks slipped 1.56 per cent, the materials sector dropped 1.41 per cent and financial companies backpedalled 1.04 per cent.

The local trading day got off to a poor start following a disappointing night on Wall Street, which finished lower for a fifth straight session, and faded into the close to end the day down more than one per cent.

Some 16 of the 20 stocks on the S&P/ASX20 ended the session in red figures, with QBE posting the largest decline, having fallen 3.31 per cent, or 46 cents, to $13.45.

Macquarie Group (down 93 cents at $27.91) and AMP Ltd (off 13 cents at $4.19) also posted falls of more than three per cent.

There were roughly three stocks down for every one that ended the day higher.

Bell Direct equities analyst Julia Lee said the Australian market fared better than the sharp declines on overseas markets – including a five per cent fall in Italy, three per cent fall in Spain and 1.9 per cent fall in the US.

“In comparison to overseas markets we have not done too badly,” Ms Lee said.

Ms Lee said trading conditions were subdued on Thursday, with the $4.1 billion worth of turnover about 17 per cent less than average daily volumes for March.

Making news on Wednesday, BHP Billiton said it was committing $US708 million ($A692.73 million) on work for the second phase of the Gulf of Mexico’s Mad Dog oil field project.

The mining giant closed down 66 cents, or 1.93 per cent, at $33.59, while fellow miner Rio Tinto slipped $1.33, or 2.05 per cent, to $63.52.

Ms Lee said BHP closed at its lowest level since 2009 and below the key technical support level of $34.

“That’s a worrying signal,” Ms Lee said.

The spot price of gold in Sydney finished at $US1,659.25 per fine ounce, up $US11.465 from Tuesday’s local close of $US1,647.785 per ounce.

National turnover was 1.8 billion securities worth $4.1 billion.