By Oliver Gray
Investing.com - The S&P/ASX 200 was 20.10 points or 0.27% lower at 7,350.70 in Tuesday’s trade, following gains of 0.8% in the previous session, with market participants remaining cautious amid record valuations in U.S. equities and the Reserve Bank of Australia's closely monitored interest rate decision due later in the session.
ASX 200 Futures futures were 37 points or 0.5% lower.
Among stocks, major mining companies fell on after iron ore prices, with Rio Tinto Ltd (ASX:RIO) down 0.51% BHP Billiton Ltd (ASX:BHP) falling 0.88% and Fortescue Metals Group Ltd (ASX:FMG) losing 1.4%. Insurance Australia Group Ltd (ASX:IAG) shed 5.37% after noting that claims from recent storms were already $A280 million above previous assumptions. Meantime, Premier Investments Ltd (ASX:PMV) added 0.48% and Goodman Group (ASX:GMG) jumped 5.17% after upgrading its guidance.
On the bond markets, Australia 10-Year rates were near 32-month highs of 1.971%, while United States 10-Year yields were steady at 1.561%.
In policy news, the RBA’s rate decision will be closely followed by investors amid growing expectations for officials to revise their current guidance amid a sharp rise in energy prices, strong inflation figures and a big jump in government bond yields. Market participants will also be monitoring the outcome of central bank meetings in the United States and Britain later this week.