Fears over the health of the global economy and financial system pummelled the Aussie market today.

Stocks were battered from the outset following last night's sombre assessment of the US economy by the Fed.

Miners bore the brunt of today's punishment amid fading prospects for commodity demand; BHP lost 4.1% and Rio Tinto dropped 6.5%.

In the energy space, Woodside declined 3.4% whilst Nexus plummeted 52% following the resignation of its Managing Director.

The big banks were also slammed; Westpac fell 2% and NAB shed 3%.

The ASX 200 plunged 107 points (-2.6%), closing at 3965.