The S&P/ASX 200 Index (ASX: XJO) is barely higher on Monday, despite more stocks falling than rising.
At the time of writing, the benchmark index is up around 0.1% to 9,014 points, after closing 0.16% lower at 9,005 points on Friday.
But the gains are pretty narrow across the market. Around 105 ASX 200 shares are falling, compared with 85 trading higher and 10 unchanged.
So, what's holding the ASX 200 up today?
Image Source: Getty Images
Resources are holding the index up
The big miners are giving the market some support today.
BHP Group Ltd (ASX: BHP) shares are up 1.38% to $63.11 after reports that China Baowu Steel Group is considering buying a 15% to 25% stake in BHP's Jimblebar iron ore mine in Western Australia.
BHP has not confirmed any deal and said it regularly considers options that could create long-term value for shareholders.
Rio Tinto Ltd (ASX: RIO) shares are also 0.76% higher at $177.24, while Fortescue Ltd (ASX: FMG) shares have gained 1.60% to $17.50.
Energy stocks are also getting a lift as oil prices rise again amid renewed tensions between the US and Iran.
Brent crude is trading around US$96.45 a barrel, while US crude is near US$91.85.
Woodside Energy Group Ltd (ASX: WDS) shares are up 0.88% to $32.11, and Santos Ltd (ASX: STO) shares have climbed 1.16% to $8.31.
Wall Street adds to rate concerns
US markets finished lower on Friday after a stronger-than-expected jobs report increased expectations that the Fed Reserve could lift interest rates again this month.
The US economy added 162,000 jobs in August, well ahead of forecasts, while the unemployment rate remained at 4.1%.
That pushed bond yields higher and weighed on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI) fell 0.51%, the S&P 500 Index (SP: .INX) dropped 0.38%, and the Nasdaq Composite Index (NASDAQ: .IXIC) lost 0.29%.
Markets are now putting the chance of a September rate hike at around 60%, up from roughly 50% before the jobs data was released.
That has also put focus on US inflation figures due on Friday, which could have a big say in what the Fed does at its next meeting.
Foolish takeaway
The ASX 200 is only just in positive territory, and the session still looks fairly mixed.
Whether it stays there could depend on how long the strength in resources lasts, especially with rate expectations moving around again.
With US inflation data to come this week, there's still plenty that could change the direction of markets.
