Australian shares have handed back early gains to end the session flat, as wary investors mulled fresh Middle East attacks and likely incoming interest rate hikes from two major central banks.
The S&P/ASX200 inched 8.7 points higher on Monday, up 0.1 per cent, to 8,749.9, as the broader All Ordinaries gained 3.7 points, or 0.04 per cent, to 8,923.9.
Easing metals prices weighed on local mining stocks, made worse by elevated crude prices amid persistent attacks on oil tankers and a Houthi drone strike on a Saudi oil pipeline.
It is a huge week for central banking, with markets bracing for the US Federal Reserve and Bank of Japan to increase their funding and policy rates in the face of stubborn inflation and, in Japan’s case, a soft yen.
The Australian dollar is buying 71.44 US cents, down from 71.73 US cents on Friday at 5pm as bets narrowed on a US rate hike.
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