Energy stocks tumbled 0.8 per cent after Yancoal plunged 8 per cent and Whitehaven Coal dived 3.6 per cent. Declines in market heavyweights Woodside (down 1.2 per cent) and Santos (down 0.6 per cent) also helped drag the sector lower. Ampol rose 1.6 per cent and Viva Energy Group was up 0.3 per cent.

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Other poor performers were GQG Partners (down 2.34 per cent), James Hardie Industries (down 2.2 per cent) and Infratil (down 2.1 per cent).

The lowdown

Capital senior financial market analyst Kyle Rodda said markets were treading water ahead of the US inflation data being released on Tuesday at 11.30pm AEDT.

“The headline [inflation] number is expected to remain around 3.1 per cent, but the more important core figure is tipped to decline to 3.7 per cent, suggesting ongoing disinflation in the [United] States,” Rodda said in a note. “The data is one of the final pieces of the puzzle the markets will receive before next week’s Fed meeting. Rates markets still imply three cuts from the central bank this year and no move at the upcoming meeting.”

The S&P 500 slipped 5.75 points, or 0.1 per cent, to 5117.94 overnight, coming off just its third losing week in the last 19. It’s still near its all-time high set on Thursday, buoyed by expectations that cuts to interest rates are coming this year and by signals that the economy remains remarkably resilient.

The Dow Jones rose 0.1 per cent and the Nasdaq composite fell 0.4 per cent.

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The latest GST carve-up confirms three things – Queensland is finally sitting at the grown-up’s table, Scott Morrison’s deal to buy off West Australian voters is costing everyone else a bomb, and the current allocation system is falling apart, writes senior economics correspondent Shane Wright.

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Former Reserve Bank governor Philip Lowe has joined the chorus of voices warning that stubborn inflation could lead to interest rates staying higher for longer than many expect. Speaking after his appointment as the next chair of philanthropic fund manager Future Generation Australia, Lowe echoed the cautious outlook on rate cuts from JPMorgan boss Jamie Dimon, who said borrowing costs in the US may need to stay high in the near term to keep inflation at bay.

With AP, Bloomberg