MELBOURNE, Oct 7 (Reuters) - Australian shares sank 2.7 percent on Tuesday, joining a worldwide equity market rout, on concerns the escalating credit crisis would drag the global economy into recession. An expected 50 basis point rate cut to 6.5 percent by the Reserve Bank of Australia on Tuesday was unlikely to help stem the slide, a dealer said. The decision is due at 2.30 p.m. (0330 GMT). 'Is that in itself going to stimulate demand to the extent it will support equity markets? No,' said Leigh Gardner, ABN AMRO's head of distribution. By 2352 GMT, Australia's benchmark S&P/ASX 200 index was down 120.1 points at 4,420.3, adding to a 3.3 percent decline on Monday when it closed at a near three-year low. On Wall Street, the Dow Jones industrial average ended below 10,000 for the first time in four years, while European shares...
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