The S&P/ASX200 ended Monday 4.3 points higher, up 0.05 per cent to 8686.4, as the broader All Ordinaries gained 4.5 points, or 0.05 per cent, to 8859.2.
Interest in the local market waned as investors mulled French bond market jitters, prompting them to sell Euros for US dollars, bolstering the greenback and capping an early lift in commodity prices.
The gap between French and German 10-year borrowing costs has grown to its widest since 2012's Euro zone crisis, sparking fears of a sovereign debt crisis, Pepperstone head of research Chris Weston said.
"The ASX200 certainly came off its highs, and I think everybody is looking at what happens in Europe, but where do those funds go?" he told AAP.
"Whether those international flows head to Australia is debatable, but we would be seen something as more of a safe haven or value market because we have a low beta, more defensive kind of structure than other markets."
Seven of 11 local sectors ended the session lower, led by consumer cyclicals, IT and communications stocks.
The traditionally defensive health care sector outperformed with a 0.7 per cent gain alongside strong performances from Cochlear, Telix and CSL, which inked a treatment development deal with Alentis Therapeutics.
Raw materials handed back most of their early lead but still ended the session almost 0.4 per cent higher, as BHP and Rio Tinto edged up despite easing copper and iron ore prices.
Gold stocks stumbled as the precious metal eased to $US4135 ($A5959) an ounce.
The heavyweight financials segment also threw away its head start to end the day roughly flat, with the big four banks trading either side of break-even and the major insurers underwater.
Consumer cyclicals dropped 0.9 per cent in a broad-based sell-off, with Westpac's consumer sentiment survey to potentially offer closer detail on Tuesday.
In company news, Southern Cross Electrical shares surged more than nine per cent after Macquarie upgraded the company to an "outperform" rating due to data centre demand.
Sweden's EQT Infrastructure has confirmed its takeover bid for Cleanaway, offering $9.4 billion for the waste management group.
The Australian dollar is buying 69.37 US cents, down from 69.69 on Friday at 10pm.
ON THE ASX:
* The S&P/ASX200 rose 4.3 points, or 0.05 per cent, to 8686.4.
* The broader All Ordinaries gained 4.5 points, or 0.05 per cent, to 8859.2.
One Australian dollar trades for:
* 69.41 US cents, from 69.37 US cents at 5pm AEST on Friday
* 109.53 Japanese yen, from 109.48 Japanese yen
* 62.01 euro cents, from 61.61 euro cents
* 52.54 British pence, from 52.50 pence
* 124.10 NZ cents, from 123.60 NZ cents
9°C