The S&P/ASX 200 Index (ASX: XJO) is trading close to flat on Monday.
At the time of writing, the benchmark index is down 0.03% to 9,089 points after closing Friday at 9,092.3 points.
The ASX 200 climbed as high as 9,122 points earlier in the session before dropping to 9,055 points.
It also remains around 2% below the record high reached earlier this month.
So, what is keeping the ASX 200 close to flat today?
The banks are having a strong day
The ‘big four’ banks are doing plenty of the work keeping the ASX 200 around the flat line.
Commonwealth Bank of Australia (ASX: CBA) shares are up 2.22% to $160.74, while Westpac Banking Corp (ASX: WBC) shares have climbed 2.63% to $34.79.
National Australia Bank Ltd (ASX: NAB) shares are 2.17% higher at $39.12, and ANZ Group Holdings Ltd (ASX: ANZ) shares have gained 2.31% to $37.58.
However, with the banks carrying such large weightings in the index, those gains are helping offset weakness across a number of other sectors.
At the latest check, 101 stocks were lower, 91 were higher, and 8 were unchanged.
Gold miners are getting hit
The other side of the market looks very different, with gold and mining shares among the biggest losers.
Northern Star Resources Ltd (ASX: NST) shares are down 5.27% to $23.48, while Evolution Mining Ltd (ASX: EVN) shares have fallen 5.90% to $14.75.
Capricorn Metals Ltd (ASX: CMM) shares are also down 4.99% to $16.37, and BHP Group Ltd (ASX: BHP) shares have dropped 2.30% to $65.75.
Gold tanked late last week after Federal Reserve Chair Kevin Warsh warned that price pressures remained a concern and interest rates may need to rise again.
Warsh said inflation still needs to return to the Fed’s 2% target, which sent bond yields higher and lifted expectations for another rate hike.
More pressure from overseas
The lead from overseas is not helping much either.
US futures are pointing lower ahead of Monday’s session, with S&P 500 Index (SP: .INX) futures down around 0.5% and Nasdaq Composite Index (NASDAQ: .IXIC) futures around 0.7% lower.
Oil prices have also moved higher after US forces struck two Iranian rocket launchers in the Strait of Hormuz, raising concerns about another escalation in the region.
Brent crude futures are trading around US$89 a barrel.
That is helping energy shares hold up better.
Santos Ltd (ASX: STO) shares are up 1.05% to $8.21, and Woodside Energy Group Ltd (ASX: WDS) shares are 0.93% higher at $32.57.
The post Why the ASX 200 is struggling today despite a bank share rally appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.