Both the key Australian indices fell on Monday, with the S&P/ASX200 (INDEXASX: XJO) falling 0.3% and the All Ordinaries (INDEXASX: XAO) 0.4% with the technology sector the biggest detractor, down 2.8%.
The primary culprits were Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) which fell 3.4% and 2.3%, respectively, as the Israel-Hamas crisis made investors move back to risk off positioning while also threatening further pressure on energy price inflation.
Xero Limited (ASX: XRO) share price
On the positive side was the materials sector, which gained 0.4%, driven higher by a surging gold price and further weakening on the Australian dollar.
The likes of Regis Resources Ltd (ASX: RRL) and Northern Star Resources Ltd (ASX: NST) gained 5.8% and 3.2% amid a flock of investors returning to safe haven assets once again.
It was a similar story for energy, with the Israel conflict set to keep the oil price above US$90 per barrel and benefitting the likes of Woodside Energy Group Ltd (ASX: WDS) in the short-term.
Magellan Global Fund (ASX: MGF) restructure: CSL Limited (ASX: CSL) not hit by Ozempic
The Magellan Global Fund (ASX: MGF), a listed investment trust that has been trading at a discount, rallied 4.2% on Monday, after the company announced its intention to restricted the closed end vehicle into an unlisted open-ended one, in an effort to remove the discount to NTA.
Shares in Liontown Resources Ltd (ASX: LTR) remained in a trading halt after Gina Rinehart managed to push away global lithium giant Albemarle Corporation (NYSE: ALB) from a $6.6 billion deal with the company now needing to raise fresh funds to pay for the construction of its Kathleen Valley asset.
Liontown Resources Ltd (ASX: LTR) share price
Blood treatment group CSL Limited (ASX: CSL) fell just 0.6% on a weak day for the market, with management indicating the company would not be impacted by the increasingly popular Ozempic treatment, which has been seen as a solution to kidney treatments.
Fletcher Building Ltd (ASX: FBU) fell 8.6% after exiting a trading halt that highlighted widespread issues with a number of plumbing products.
S&P 500 (INDEXSP: .INX) gains on oil retreat: Israel-Hamas conflict to remain local
Investors paused on Monday in the US, pulling back on safe haven bond and gold purchases amid hope that the Israel-Hamas conflict would remain localised.
This pushed the oil price lower, however, many experts still see significant risk that Iran or Egypt become involved thus escalating the situation.
The result was a 1% gain in the Dow Jones Industrial Average (INDEXDJX: .DJI), 1.1% in the S&P 500 (INDEXSP: .INX) and 1.2% in the Nasdaq Inc (NASDAQ: NDAQ).
Lululemon Athletica Inc. (NASDAQ: LULU) shares gained more than 10% after the company received news it was set to be included in the S&P 500 index from Wednesday, thus attracting ETF and index fund flows.
Earnings season is set to kick off this week, beginning with Goldman Sachs Group Inc (NYSE: GS) and Bank of America Corp (NYSE: BAC) with hope that the six-month earnings recession may be reversed following another strong period for the consumer.