By Oliver Gray
Investing.com - The ASX 200 closed lower on Tuesday, falling 16.9 points or 0.23% to 7474.5, retreating from all-time highs after advancing 1.41% in the previous session as sentiment soured after Reserve Bank of Australia officials held firm on their plan to reduce pace of bond purchases in September, while accelerating infection rates of the coronavirus Delta variant continued to sap risk appetite.
New South Wales reported 199 fresh cases, with 50 of those active in the community while infectious amid fresh infections at an aged care home, while Queensland added 16 fresh cases as rapidly growing cluster continues to spread throughout local Brisbane schools. Victoria reported 4 cases, all of which were linked to known outbreaks and were in quarantine for their infectious period.
On the policy front, the Reserve Bank of Australia surprised analysts as they held firm on their current tapering timeline, despite protracted lockdowns across the country. Policymakers maintained the current cash rate at 0.1% and will continue to purchase government securities at the rate of $5 billion a week until early September and then $4 billion a week until at least mid November.
Among stocks, Afterpay Touch Group Ltd (ASX:APT) and Zip Co Ltd (ASX:Z1P) both surged 11.78% and 7.04% respectively after Square (NYSE:SQ) CEO Jack Dorsey moved to acquire Afterpay earlier this week, while Qantas Airways Ltd (ASX:QAN) dipped 1.32% following news that the airline will stand down 2500 employees amid the COVID-19 outbreak.
In New Zealand, the NZX 50 closed little changed at 12700.5.