ASX200 skids into the red following RBA meeting

The ASX200 has opened higher ahead of the Reserve Bank's decision. Images: Getty

The benchmark S&P/ASX200 (^AXJO) has finished 0.65 per cent lower on Tuesday, at 5,252.30 points.

The broader All Ordinaries index (^AORD) also dipped lower on Tuesday, finishing down 0.42 per cent at 5,301.30 points.

It came after a positive start for local markets, which saw both the ASX200 and All Ordinaries jump around 2.5 per cent higher at the open before toppling lower at midday.

The movements came as the Reserve Bank of Australia announced it would keep the official interest rate at its record low 0.25 per cent for the month of April, and the foreseeable future, while holding off announcing a quantitative easing policy.

What happened today?

The ASX200 jumped at the open, up 2.44 per cent at 10:23am AEDT to 5,414.90 points following a surge on Wall Street overnight as coronavirus cases showed signs of easing.

The All Ordinaries also leapt higher, up 2.53 per cent to 5,458.10 points. 

However the ASX lost its early gains by midday on Tuesday, down 0.30 per cent at 12:36pm AEDT, while the All Ordinaries also dipped into the red, down 0.18 per cent.

It came ahead of the Reserve Bank of Australia’s monthly meeting this afternoon.

The Bank had flagged it would not move rates from its 0.25 per cent floor for quite some time, although experts were split on whether the RBA will embark on a policy of quantitative easing today. 

What happened overnight?

Global markets jumped overnight as coronavirus-related deaths showed signs of slowing in certain major cities.

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite added more than 7.0 per cent each after a decline in the daily death toll in New York, the US' biggest coronavirus hot spot.

US officials had earlier braced the country for a dire week, with the death toll topping 10,000.

The S&P/ASX200 benchmark index finished Monday up 219.3 points, or 4.33 per cent, to 5,286.8, while the All Ordinaries index rose 216.7 points, or 4.24 per cent, to 5,323.6 points.

The rally snapped a two-day losing streak, with the ASX200 closing at its best level since March 17.

With AAP. 

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