Australian shares slip as geopolitical tensions rise

Australian shares have closed lower after a series of bleak headlines boosted risk sentiment and sent jitters through equity markets.

The S&P/ASX200 fell 20.6 points, or 0.24 per cent, to 8,414.1 on Monday as the broader All Ordinaries lost 22.8 points, or 0.26 per cent, to 8,637.5.

The fall followed multiple escalations in global risk, including the US and China accusing each other of breaking tariff agreements, Ukrainian drone strikes deep within Russian territory and reports Iran has boosted its weapons-grade uranium production.

"We saw a trio of headwinds hit the wires over the weekend and that combined to put US equities and the Aussie equity market on the back foot," IG Markets Analyst Tony Sycamore told AAP.

"But that said, the ASX 200 has outperformed looking across the regional equity markets."

By comparison, Japan's Nikkei was down 1.3 per cent by Monday afternoon and Hong Kong's Hang Seng index slipped 1.1 per cent.

Energy stocks led eight of 11 local sectors lower, shedding 1.4 per cent despite a lift in oil prices, while the gloomy trade outlook pushed iron ore prices to one-month lows and weighed on large-cap miners.

BHP lost 1.2 per cent to $37.78, Rio Tinto slipped 1.7 per cent to $110.75 while Fortescue fell more than 2.5 per cent.

Gold miners were mixed as risk-off sentiment pushed investors towards the safe haven, helping Evolution Minerals notch a three per cent lift, while larger competitor Northern Star fell 0.5 per cent to $20.88.

Gold futures pushed 0.6 per cent higher over the local session to $US3,366 ($A5,205) an ounce.

Financials pared early losses to finish the day just below flat, thanks in part to strong performances in the health insurance sector, as three of the big four banks bled lower.

Medibank Private and Nib both rallied more than two per cent.

The Commonwealth Bank finished the day higher, up just 0.3 per cent but defying the gravity that dragged on Westpac (-1.2 per cent), NAB (-0.7 per cent) and ANZ (-0.2 per cent).

Soul Patts and Brickworks were the top 200's best performers after announcing a $14 billion merger, lighting a match under their share prices, rocketing 15.9 per cent and 27.2 per cent respectively.

The Australian dollar is buying 64.67 US cents, up from 64.23 US cents at 5pm on Friday.

Looking ahead, it's a big week for macroeconomic data, with March quarter Australian GDP numbers due Wednesday and a slew of US figures and the European Central Bank's monetary policy decision coming later in the week.

On Tuesday, the Reserve Bank will release its May meeting minutes, which investors will pore over to see how close the central bank was to a jumbo, 50 basis point interest rate cutin May and for any hints of a further cut at its July meeting.

ON THE ASX:

* The benchmark S&P/ASX200 index finished Monday 20.6 points lower, down 0.24 per cent to 8,414.1

* The broader All Ordinaries fell 22.8 points, or 0.26 per cent, to 8,637.5

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 64.67 US cents, from 64.23 US cents on Friday at 5pm

* 92.66 Japanese yen, from 92.38 Japanese yen

* 56.73 Euro cents, from 56.61 Euro cents

* 47.80 British pence, from 47.66 pence

* 107.69 NZ cents, from 107.65 NZ cents