Australian shares fell for a third straight session on Monday, with mining and energy stocks leading the decline, while fears of an early interest rate hike also weighed on the market.

The S&P/ASX 200 index fell 0.8% to 7,911.6 points.

The index ended 0.2% higher last week.

Last week’s data showing strong job growth in June prompted investors to dial up interest rate hike expectations to as early as Aug. 6, when the Reserve Bank of Australia meets next to discuss its policy settings.

Miners fell 1.1% to hit their lowest since November 2022, after iron ore prices closed lower last week amid a lack of concrete stimulus from top consumer China and weak seasonal demand for steel.

Iron ore futures on the Dalian Commodity Exchange rose 0.5% on Monday.

Rio Tinto and BHP Group slipped 0.7% and 0.6%, respectively. Energy stocks eased 1.3%, after oil prices settled at a one-month low on Friday on Gaza ceasefire hopes.

Woodside and Santos dropped 1.9% and 1.2%, respectively. Brent crude futures rose 0.48% to $83.03 a barrel on Monday, while US West Texas Intermediate (WTI) crude gained 0.52% to $80.55 per barrel.

Gold prices rose 0.43% to $2,409.00. Banks were trading 0.9% lower, with top lender Commonwealth Bank of Australia down 1%.

The Aussie dollar was 0.11% weaker against the US dollar at A$0.67.

Australian shares struggle for direction ahead of jobs data

S&P 500 E-minis futures were up 0.33%.

The yield on benchmark 10-year Treasury notes rose to 4.2194%, compared with its US close of 4.239%.

The Dow Jones Industrial Average fell 0.93% on Friday.

The S&P 500 lost 0.71%, while the Nasdaq lost 0.81%. In New Zealand, the benchmark S&P/NZX 50 index rose 0.3% to 12,365.16 points.