Australian shares slipped on Monday as banking and tech stocks declined, while sentiment was also dented by a report from last week that showed US consumer sentiment slumped to a six-month low in May.

The S&P/ASX 200 index fell 0.2% to 7,239.2 points by 0101 GMT.

US consumer sentiment dropped last month on worries that political haggling over raising the borrowing cap could trigger a recession, a University of Michigan survey showed on Friday.

On Monday, Australian financial stocks led the declines, dropping 1.1%. All four “Big Four” banks slid.

Tech stocks retreated 0.5%, tracking their Wall Street peers lower.

Newcrest Mining Ltd rose 1.7% after the gold miner said it would back Newmont Corp’s A$26.2 billion ($17.8 billion) takeover offer in one of the world’s largest buyouts so far this year.

Meanwhile, St Barbara said it would not engage further with Silver Lake Resources on its revised A$707 million ($479.56 million) offer for the gold miner’s Western Australian Leonora assets, sending shares about 4% higher.

Australian shares struggle for direction despite US data cheer

InvoCare climbed 11% after the funeral services provider received a higher A$1.86 billion ($1.26 billion) offer from TPG Global, weeks after the private equity firm withdrew its A$1.81 billion buyout bid.

The mining index advanced 0.6%, with sector heavyweights BHP Group and Rio Tinto rising 1.2% and 0.7%, respectively. Gold stocks added 1.7% even amid subdued bullion prices. Sector-major Northern Star Resources gained 1.8%.

New Zealand’s benchmark S&P/NZX 50 index dropped 0.4% to 11,887.66 points.

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