The local share market has slumped to its biggest loss in two weeks as investors brace for political uncertainty and unfriendly economic data.
The benchmark S&P/ASX200 index on Monday dropped 48.4 points, or 0.8 per cent, to 7,733.7, while the broader All Ordinaries fell 64.8 points, or 0.81 per cent, to 7,975.1.
Inflation data to be released later in the week is predicted to show price growth accelerated over the year to May, which could add to the case for the Reserve Bank to raise the cash rate at its next board meeting.
While Wednesday's Australian Bureau of Statistics consumer price index is expected to show inflation slowed 0.2 per cent from April to May, the annual rate should rise from 3.6 per cent to 3.8 per cent, said JP Morgan analysts Ben Jarman, Tom Kennedy and Jack Stinson.
But the Reserve Bank should be able to hear an upbeat tune if it blocks out the noise.
"May's significant negative seasonality should prosaically help to trim perceptions of sticky inflation to some extent," the analysts said.
Their forecast was echoed by ANZ Research's Brian Martin and Daniel Hynes.
They said markets had been taking negative economic data as a positive sign, speeding central banks towards rate cuts, but too much bad news could hit risk appetite and equity markets.
More uncertainty over the week ahead could be playing on traders' minds.
Upcoming elections in France and the UK, as well as the Donald Trump and Joe Biden debate, were a source of political risk and could cause unexpected volatility in the markets, said Capital senior market analyst Kyle Rodda.
Online luxury fashion retailer Cettire showed cost-of-living stresses are continuing to have a limiting effect on consumers during the spring-summer sales period.
"A softening demand environment and an increase in promotional activity has been visible across our footprint," Cettire said in a trading update.
RBC Capital Markets analyst Wei-Weng Chen was concerned Cettire's updated earnings guidance implied the company would make a loss in the June quarter.
Cettire was punished by investors, tumbling 49.3 per cent to $1.05.
Consumer discretionary stocks altogether fell 1.2 per cent.
Star Entertainment fell 4.1 per cent after the casino operator warned of an earnings dip as a result of reduced spending from high-rollers and increased risk compliance costs.
Department store chain Myer was an outlier for the sector, jumping 20.2 per cent after announcing it had made a takeover bid for Premier Investments' Apparel Brands clothing labels, including Just Jeans, Jay Jays and Portmans.
Premier rose a respectable 6.9 per cent.
Nine of the other 10 ASX sectors also finished in the red, with energy and health stocks the worst hit.
Fossil fuel giants Woodside and Santos fell two per cent and 1.6 per cent, respectively, after crude oil prices retreated from a two-month high on Friday.
Meanwhile, sleep apnoea device producer Resmed plunged 13.2 per cent after US pharmaceuticals giant Eli Lilly over the weekend announced trials in weight-loss drug tirzepatide were successful.
The Ozempic competitor was found to have reduced sleep apnoea severity, potentially under-cutting Resmed's key market.
Miners were in a hole, with BHP down 0.8 per cent, Rio Tinto 1.1 per cent and Fortescue 2.1 per cent.
The big banks also receded, with CBA and NAB down 0.7 per cent, while Westpac shrank 0.3 per cent and ANZ finished one per cent lower.
Only the industrials sector was spared from the sell-off, gaining 0.71 per cent.
Waste management company Cleanaway jumped 2.2 per cent after buying Citywide Waste and its West Melbourne transfer station for $110 million, pending regulatory approvals.
E&P Capital analyst Cameron McDonald called it a "smart strategic bolt-on acquisition" that would allow Cleanaway to double its waste transfer station capacity if it stumps up an additional $35 million.
The Australian dollar was buying 66.40 US cents, from 66.64 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday down 48.4 points, or 0.8 per cent, at 7,733.7.
* The broader All Ordinaries fell 64.8 points, or 0.81 per cent, to 7,975.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.40 US cents, from 66.64 US cents at Friday's ASX close
* 106.05 Japanese yen, from 105.90 Japanese yen
* 62.07 Euro cents, from 62.18 Euro cents
* 52.51 British pence, from 52.62 pence
* 108.61 NZ cents, from 108.77 NZ cents.
