The local share market has finished higher, but for a terrible reason - the war erupting in the Middle East, which pushed up oil and gold prices as it claimed hundreds of lives.
The benchmark S&P/ASX200 index on Monday finished up 16 points, or 0.23 per cent, to 6,970.2, while the broader All Ordinaries climbed 14 points, or 0.2 per cent, to 7,157.0.
IG market analyst Tony Sycamore said that Hamas' surprise attack on Israel over the weekend, which brought horrific images and stories, had resulted in a sombre mood in markets.
"The immediate reaction was a flight to safety across multiple asset classes, with the US dollar, crude oil, gold and bonds all rallying while S&P futures fell," he wrote.
NAB economist Taylor Nugent said while it would take a broadening of the conflict to threaten oil supplies, more immediately it could lead to stricter enforcement of Iranian sanctions and was dashing hopes of a boost in Saudi supply next year as part of a peace deal with Israel.
Brent crude on Monday jumped more than three per cent to a one-week high of $US87 a barrel, leading the ASX's energy sector to be the biggest gainer, rising 3.0 per cent.
Woodside Energy gained 3.1 per cent to a one-week high of $35.24, Santos climbed 4.2 per cent to $7.66 and Ampol added 1.9 per cent to $32.30.
Goldminers also ascended as the price of the safe haven asset rose one per cent to a two-week high of $US1,851 an ounce.
Newcrest gained 4.7 per cent to a two-week high of $25.42, Northern Star added 4.0 per cent to a nearly three-week high of $11.23 and Evolution finished up 6.3 per cent at a two-week high of $3.55.
Elsewhere in the heavyweight mining sector, Fortescue Metals fell 1.9 per cent to $20.67, BHP edged 0.1 per cent higher at $44.03 and Rio Tinto was basically flat at $113.20.
The Big Four banks finished mixed, with ANZ the biggest gainer, adding 0.4 per cent to $25.43. NAB edged 0.1 per cent higher at $28.96 and Westpac edged 0.1 per cent lower at $21.42, while CBA was basically flat at $100.03.
The rise in oil prices further battered Qantas, for which biggest expense is jet fuel. Its shares fell 3.8 per cent to a one-year low of $4.84, down from over $6.50 toward the end of July.
The Australian dollar was buying 63.55 US cents, from 63.56 US cents at Friday's ASX close.
"Looking at the level of the AUD it would be easy to think that nothing much has happened," Corpay APAC currency strategist Peter Dragicevich said.
But he noted that in fact the Aussie experienced a decent amount of volatility in the wake of Friday night's US non-farm payrolls report, which seemingly had something for everyone.
The headline number showed that twice the number of jobs were created than analysts were forecasting, but the US unemployment rate stayed even rather than realising an expected slight decline, and average hourly earnings fell unexpectedly.
"The markets didn’t know what to make of the US jobs figures - and it was a mixed bag," said Capital.com market analyst Kyle Rodda.
Looking forward, the markets will be closely watching the release of US consumer price index data on Thursday night AEDT.
ON THE ASX:
* The S&P/ASX200 index finished Monday 16 points higher at 6,970.2, a gain of 0.23 per cent
* The All Ordinaries rose 14 points, or 0.2 per cent, to 7,157
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.55 US cents, from 63.56 US cents at Friday's ASX close
* 94.81 Japanese yen, from 94.68 Japanese yen
* 60.21 Euro cents, from 60.34 Euro cents
* 52.08 British pence, from 52.23 British pence
* 106.46 NZ cents, from 106.80 NZ cents
