Australia ASX200 falls after central bank disappoints

The Australian share market finished session down on Tuesday, 03 August 2021, as investors moved to lock in gains following the market's surge the previous day. Meanwhile, selloff pressure fuelled further after the Reserve Bank of Australia stuck with its plan to taper its bond-buying program from September despite Sydney's prolonged lockdown.

At closing bell, the benchmark S&P/ASX200 fell 16.97 points, or 0.23%, to 7,474.48. The broader All Ordinaries decreased 10 points, or 0.13%, to 7,750.50.

Shares of Mining and energy companies declined, as base metals and crude oil fell on coronavirus woes that could slow demand and hinder recovery. Rio Tinto , BHP Group and Fortescue Metals shed between 0.6% and 1.6%. Oil Search, Woodside Petroleum and Santos fell over 1% as oil extend overnight losses on fuel demand concerns.

 

Tech stocks were the only bright spot, with Afterpay extended gains for a second straight session, after the buy-now-pay-later firm received $29 billion buyout offer from Jack Dorsey-led Square Inc on Monday.

ECONOMIC NEWS: The Reserve Bank of Australia on Tuesday announced its decision to keep the cash rate unchanged at 0.1%. The Australian central bank also stuck to plans to taper its bond buying from September.

CURRENCY NEWS: The Australian dollar changed hands at $0.7394, having risen from below $0.735 yesterday.

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