Aust shares drop 1.1pct, close at eight-week low

The local bourse has dropped for the fourth straight day as the United States draws ever closer to a catastrophic default on its debt. 

The benchmark S&P/ASX200 index on Thursday suffered its biggest loss in nine weeks, falling to its lowest closing level in eight weeks. 

It dropped 75.6 points, or 1.05 per cent, to 7,138.2, its lowest close since March 30 and biggest single-day drop since a 1.4 per cent fall on March 20.

The broader All Ordinaries on Thursday fell 76.2 points, or 1.03 per cent, to 7,316.7.

The Australian dollar was buying 65.36 US cents, from 65.72 US cents at Tuesday's ASX close.