Australian Shares Flat After Early Rally Fizzles on Stronger US Dollar

Australian shares ended Monday with a modest gain after an early rally was reversed by a stronger US dollar. The S&P/ASX200 closed up 3.5 points, or 0.04%, at 8,685.6, while the All Ordinaries rose 3.8 points, or 0.04%, to 8,858.5.

The initial boost in local stocks was undone as investors shifted focus to a potential fiscal crisis in France. This prompted selling of Euros in favor of US dollars, strengthening the greenback and weighing on commodity prices.

Seven of the 11 sectors on the Australian market finished lower, with consumer cyclicals, IT, and communications stocks leading the declines. The Australian dollar also weakened, trading at 69.37 US cents, down from 69.69 on Friday.