The laggards

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The materials sector remained in the red throughout the session and was one of the index’s worst performers. It was down 0.5 per cent as mining heavyweights BHP (down 0.4 per cent), Fortescue (down 1.4 per cent), and Rio Tinto (down 1.3 per cent) all declined.

Mineral Resources tumbled 9.6 per cent after it announced that managing director Chris Ellison would step down within 18 months after an investigation by the board found he had used company resources for personal benefit.

The billionaire will repay almost $3.8 million in funds owed, forfeit bonuses tipped to be worth $9.6 million and make charitable donations totalling $5 million over the coming years.

Mineral Resources announced its chairman James McClements would also step down within the next year as part of an accelerated succession plan aimed at protecting shareholder value and investors’ interests.

Cautious investors shunned the energy sector, which closed down 0.7 per cent, as Woodside (down 0.3 per cent) and Ampol (down 1 per cent) shares retreated.

The lowdown

In the US, Amazon led stock indexes higher on Friday while a surprisingly weak jobs report marred by some unusual occurrences cemented bets on Wall Street for another cut to interest rates this week.

On Friday, the S&P 500 rose 0.4 per cent to recover some of its loss from the day before, which was its worst in eight weeks. The Dow Jones added 288 points, or 0.7 per cent and the Nasdaq composite gained 0.8 per cent.

The nearly unanimous expectation on Wall Street remains for the Federal Reserve to cut its main interest rate by a quarter of a percentage point this week. But the weaker than expected jobs report wiped out the slim chance traders had been seeing of the Fed holding rates steady, according to data from CME Group.

eToro market analyst Josh Gilbert said this week would prove big for investors as they navigate one of the most important weeks of the year.

Gilbert said three things to watch for the week ahead were the US election, the RBA’s rate decision and the US Fed rate decision.

“It’s crucial to note that we’re likely to see volatility pick up this week,” he said.

“Although we’re mentioning three things, there are plenty of other big events including more earnings results from US and AU companies. Volatility and pullbacks are simply the price of entry into investing, and if you have a long-term investing plan, stick with it. Whatever is thrown investors’ way over the next week, the key is not to panic.”

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With the US polls neck and neck, Gilbert said an election outcome would be welcomed on the markets, which “crave certainty above all else”.

“It’s important to remember that despite this, markets primarily trade on fundamentals, not politics,” he said.

“The biggest risk for markets, in my view, would be an uncertain outcome. This could put investors into ‘risk-off’ mode until there’s more clarity. That could be good for safe-haven assets like bonds and gold and a short-term negative for stocks and crypto.”

“As long as the big picture remains intact with strong earnings growth and a solid economic backdrop, short-term pullbacks are likely a buying opportunity for investors.”

Tweet of the day

Quote of the day

“The public is understandably losing trust in politicians to make those decisions impartially when they’re being given free upgrades from the companies they’re supposed to regulate.”

That’s independent MP Allegra Spender who on Monday morning issued a statement declaring she would end her membership of the Qantas Chairman’s Lounge and Virgin’s Beyond Lounge. Spender said she wanted all MPs to stop being given free flight upgrades because of the risk to public trust in parliament.

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With AP

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