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Shares in oil and gas heavyweight Woodside Energy retreated 0.8 per cent to weigh heavily on the sector.

Other poor-performing stocks included Pro Medicus (down 2.1 per cent), Bluescope Steel (down 1.7 per cent) and IGO (down 1.5 per cent).

The lowdown

Eightcap market analyst Zoran Kresovic said Australian shares had “a stellar day” as investors eagerly await key monthly retail sales and inflation data, to be released on Tuesday and Wednesday, respectively. The consensus forecast of economists is for an inflation rate of 3.4 per cent, down from 3.6 per cent in the year to March.

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“We might see some more upside in the equity market because, right now, we’re one of very few markets that haven’t broken an all-time high,” Kresovic said. “In order to rally, we need to see inflation cooling off and coming in lower than what the market is anticipating.”

On Wall Street on Friday, the S&P 500 Index rebounded from its losses in the previous two trading sessions with a gain of 0.7 per cent. A tiny gain for the week enabled it to extend its weekly winning streak to five.

The technology-heavy Nasdaq Composite index surged 1.1 per cent to top its previous record high set earlier in the week. The Dow Jones Industrial Average was relatively flat, with a gain of less than 0.1 per cent.

The market received a boost from an economic report showing US consumer sentiment weakened less in May than preliminary data had suggested. A report from the University of Michigan also said US consumers’ expectations for inflation in the coming year rose by less in May than earlier feared. That could help stave off a vicious cycle where high expectations for inflation among US households drive them to behave in ways that only make inflation worse.

Worries about stubbornly high US inflation were behind last week’s rocky trading sessions.

Tweet of the day

Quote of the day

“We will consider, when necessary, appropriate measures to promote de-risking and diversification of supply with partners within and beyond the G7,” G7 finance ministers said in a communiqué, claiming China’s policies undermined their countries’ workers, industries and economic resilience.

“We will enhance co-operation to address non-market policies and practices and distortive policies, including those leading to overcapacity, through a wide range of policy tools and rules to ensure a global level playing field,” they said.

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With AP, Bloomberg

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