The benchmark S&P/ASX200 index on Monday gave up three-quarters of Friday's gains, dropping 89 points, or 1.02 per cent, to 8,668.2, while the broader All Ordinaries fell 80.6 points, or 0.89 per cent, to 8,926.2.
The last two trading days have seen similar see-saw action to a pair of days in early April. Monday's losses were the ASX200's most severe since a 1.8 per cent drop on April 9, while Friday's 1.37 per cent gains were the index's best since a 2.27 per cent rally on April 8.
Investor attention would be fully captured by stocks this week as US company reporting season hits full stride and a number of important Australian companies address shareholders, Moomoo market strategist Michael McCarthy said.
It might be a hectic week for markets, he added, with a number of US Federal Reserve board members speaking publicly, the release of New Zealand inflation data as well as a gauge of Australian and US business activity known as the purchasing manager index.
Nine of the ASX's 11 sectors finished in the red, with energy gaining 1.2 per cent and materials adding 0.3 per cent.
The financial sector was the biggest loser, dropping 2.3 per cent amid sharp falls for all the big retail banks.
ANZ lost 2.5 per cent to $30.05, Westpac dropped 3.6 per cent to $33.07, CBA retreated 2.5 per cent to $177.87 while NAB fell 2.4 per cent to $38.25.
But AMP leapt 9.8 per cent to a five-month high of $1.685 after the financial services company said it had recorded its first quarter of positive cashflows into its superannuation business since the second quarter of 2017, when it was scrutinised by the financial services royal commission.
"This reflects our continued efforts to build a compelling member proposition which is delivering outstanding investment returns, service and education," said CEO Alexis George.
In the heavyweight mining sector, Rio Tinto rose 1.2 per cent to $114.46, Fortescue added 1.5 per cent to $17.25 and BHP climbed 0.4 per cent to $40.46.
South32 gained 4.5 per cent to $3.02 after the miner said it had grown sales volumes by 21 per cent in the June quarter and beaten guidance on manganese production.
Spartan Resources dropped 1.8 per cent to $1.965 and Ramelius Resources finished down 2.0 per cent to $2.46 as the WA Supreme Court approved Spartan's takeover by Ramelius.
Spartan shares are set to be suspended from the close of trade on Tuesday, with the takeover taking effect on Thursday.
The Australian dollar was buying 65.17 US cents, from 65.02 US cents at 5pm on Friday.
ON THE ASX:
* The benchmark S&P/ASX200 index on Monday dropped 89 points, or 1.02 per cent, to 8,668.2
* The broader All Ordinaries fell 80.6 points, or 0.89 per cent, to 8,926.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.17 US cents, from 65.02 US cents on Friday.
* 96.41 Japanese yen, from 96.77 Japanese yen
* 55.99 euro cents, from 55.99 euro cents
* 48.47 British pence, from 48.46British pence
* 109.25 NZ cents, from 109.25 NZ cents
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