By Oliver Gray
Investing.com - The S&P/ASX 200 lost 30.10 points or 0.41% to 7248.40 on Tuesday, partially retracing gains of 1.3% in the previous session as investors retreated from riskier positions amid fears of rising inflation and a potential U.S. default, while the Reserve Bank of Australia held policy settings at their current levels, in line with market expectations.
In coronavirus news, Victoria tallied a record high 1763 cases, as Premier Daniel Andrews reaffirmed the state's road map to exit lockdown and open back up in line with the vaccination targets. New South Wales added 608 cases, Queensland recorded 2 local cases and the ACT added 33 cases with 14 infectious while in the community.
Among stocks, oil companies lifted, with crude trading at 7-year highs after OPEC officials agreed to stick with current small production increases. Santos Ltd (ASX:STO) added 2.54%, Beach Energy (ASX:BPT) lifted 0.7% and Oil Search Ltd (ASX:OSH) gained 2.3%. However, technology stocks dragged amid higher long term bond yields, with Wisetech Global Ltd (ASX:WTC) down 1.7%, Appen Ltd (ASX:APX) falling 5.03% and Afterpay Touch Group Ltd (ASX:APT) down 5.02%. Meantime, materials stocks were lower after weaker than expected trade data, with Rio Tinto Ltd (ASX:RIO) down 0.38%, BHP Billiton Ltd (ASX:BHP) losing 1.14% and Fortescue Metals Group Ltd (ASX:FMG) losing 1.25%.
In policy news, The Reserve Bank kept rates on hold at record lows of 0.1% as RBA governor Philip Lowe reiterated that the cash rate will not be increased until inflation is sustainably within the two to three per cent target range, saying such conditions will not be met before 2024. He also noted that housing prices are continuing to rise around the country, leading to higher levels of household debt.
In New Zealand, the NZX 50 fell 137.28 points or 1.03% to 13199.99.