The S&P/ASX200 rose 2.5 points on Monday, up 0.003 per cent to 8,808.5, as the broader All Ordinaries slipped 0.7 points, or 0.01 per cent, to 9,003.
"On the ASX200 the volatility is just seeping out of that market, and I think probably for good reason," IG market analyst Tony Sycamore told AAP.
"We've got the US earnings season coming up, we've got the Australian earnings season coming up in August, and there's still a fair bit of uncertainty around what's going on in the Middle East and whether the Reserve Bank have finished hiking rates."
Miners were under renewed selling pressure after a brief reprieve on Friday as investors continued rotating into resurgent financial stocks, which have gained more than six per cent since mid-June.
Gold producers were heavy, with the precious metal slipping to $US4,054 ($A5,851) an ounce during the session, dragging the sub-index 1.9 per cent lower.
The mega miners were mixed, with Fortescue gaining 1.6 per cent, Rio losing 0.3 per cent and BHP trading slightly better than flat after calling in the industrial umpire to help avert strike action at Port Hedland.
Battery minerals and rare earths producers also sold off.
The energy segment advanced 0.7 per cent as Brent crude hovered above $US79 a barrel, with no end in sight to renewed hostilities between the US and Iran.
Iran escalated its attacks on US bases in the Middle East during the session and says it has again halted traffic in the Strait of Hormuz.
Shares in refinery operator Ampol surged more than four per cent after it secured a $400 million subordinated notes debt facility backed by KKR.
Retail stocks were mixed ahead of Westpac and NAB's respective consumer and business surveys due on Tuesday, with discretionaries up 0.9 per cent while staples fell by the same degree.
IT stocks were the worst-performing sector, down 2.5 per cent with a big slump in Xero after its CEO Sukhinder Singh Cassidy unloaded almost $2.2 million in stock to manage her tax obligations.
In company news, oOh!Media swung four per cent higher after it revealed three suitors were considering takeover offers for the outdoor advertising company.
The Australian dollar is buying 69.29 US cents, down from 69.50 US cents on Friday at 5pm, as safe haven buyers retreat to the greenback.
Looking ahead, some big global names will deliver mid-year earnings this week including JPMorgan Chase, Bank of America, Netflix, Taiwan Semiconductor and Johnson & Johnson.
The local earnings season kicks off on July 29 with Rio Tinto's half-year results.
ON THE ASX:
* The S&P/ASX200 rose 2.5 points, or 0.03 per cent, to 8,808.5
* The broader All Ordinaries lost 0.7 points, or 0.01 per cent, to 9,003
One Australian dollar trades for:
* 69.29 US cents, from 69.50 US cents at 5pm AEST on Friday
* 112.41 Japanese yen, from 112.29 Japanese yen
* 60.76 euro cents, from 60.74 euro cents
* 51.78 British pence, from 51.76 pence
* 120.28 NZ cents, from 120.39 NZ cents
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