The local share market finished a bit lower ahead of an important US inflation readout and as Australia's first full week of earnings season kicked off.
The benchmark S&P/ASX200 index on Monday finished down 16.1 points, or 0.22 per cent, at 7,309.2, while the All Ordinaries dropped 16 points, or 0.21 per cent, at 7,519.9.
Attention globally this week will be focused on US monthly inflation data, set to be released on Thursday night AEST, for clues as to whether the Fed raises interest rates again next month after Friday's non-farm payrolls report came in as a mixed bag.
The US Labor Department reported that the US economy had added fewer than expected jobs in July, but wage growth was a bit higher than expected, providing a little something for everyone, ANZ analysts Brian Martin and Daniel Hynes wrote in a note.
"All up, the data was not a game changer regardless of your Fed view."
The market is pricing in a 15.5 per cent chance the Fed raises rates at its Sept. 20 meeting, and a 84.5 per cent chance of a pause, according to the CME Fedwatch Tool.
Domestically there are no big data readouts this week but Commonwealth Bank, Suncorp, AMP, QBE, Downer EDI, AGL, Boral, Newcrest, and REA Group are all set to announce earnings results.
EToro market analyst Josh Gilbert said that CBA's result on Wednesday would keep the market on its toes, given its nearly eight per cent weighting in the ASX200.
"The focus will be on net interest margins and loan growth for the year, alongside guidance from both these areas of the business for FY24," he said.
Health care was the biggest mover on Monday, sinking 1.1 per cent as CSL dropped 1.1 per cent and ResMed fell 4.2 per cent to a 13-month low of $29.40 following last week's disappointing earning result.
But Estia Health had gained 8.5 per cent to a five-year high of $3.08 as the aged care operator signed a $838 million deal to be taken private by Boston-based Bain Capital for $3.20 per share.
In the heavyweight mining sector, lithium producers mostly did well as as the Diggers & Dealers conference began in Kalgoorlie, WA.
Allkem added 2.4 per cent, Sayona Mining gained 3.5 per cent as it sold its first shipment from its Quebec lithium mine and Pilbara rose 3.8 per cent to $5.18 as it upped its estimates of the mineral resource at its flagship Pilgangoora mine in WA.
Small cap player Lithium Australia shares soared 66.7 per cent to an 11-month high of 5.5c after signing an agreement with mining giant Mineral Resources to develop its lithium extraction technology.
But Lake Resources plummeted 18.6 per cent to a two and a half year low of 17.5c as the beleaguered lithium developer answered a query letter from the ASX regarding Lake's claims about its Kachi project in Argentina.
Elsewhere in the sector, BHP dropped 0.5 per cent to $45.57, Fortescue Metals fell 1.6 per cent to $21.05 and Rio Tinto finished down 0.8 per cent to $113.94.
The Big Four banks were mixed, with Westpac down 0.7 per cent to $21.83 and ANZ dropping 0.6 per cent to $25.30, but NAB and CBA basically flat at $27.96 and $101.85, respectively.
Insurance companies had a dour day, with Suncorp falling 2.6 per cent, QBE down 1.8 per cent and IAG dropping 1.6 per cent.
Afterpay owner Block, now officially classified as a financial company, fell 10.1 per cent to a one-month low of $98.41 following its earnings report last week.
GQG Partners rose 4.5 per cent to $1.625 after reporting that its funds under management had hit $US108.1 billion as of July 31, from $104.1 billion a month earlier.
GUD Holdings was the biggest gainer in the ASX200, rising 3.9 per cent to $10.37 after selling pumps business Davey Water Products to ASX-listed water solutions company Waterco Limited for $64.9 million. GUD will now focus on its automotive accessory brands such as Ryco Filters and AA Gaskets.
"It is pleasing to see Davey, an iconic Australian brand with a long history in this country and abroad, combining with an Australian listed business that also shares a strong heritage in the Water sector," said GUD chair Graeme Billings.
In currency, the Aussie was buying 65.75 US cents, from 65.65 US cents at Friday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Monday down 16.1 points, or 0.22 per cent, at 7,309.2.
* The All Ordinaries dropped 16 points, or 0.21 per cent, to 7,519.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.75 US cents, from 65.65 US cents at Friday's ASX close
* 93.45 Japanese yen, from 93.65 Japanese yen
* 5983 Euro cents, from 59.94 Euro cents
* 51.63 British pence, from 51.67 pence
* 107.68 NZ cents, from 107.78 NZ cents.
