The Australian share market has closed slightly lower on Monday, as investors await a series of key economic events this week, both locally and globally.

The S&P/ASX 200 Index (ASX: XJO) edged down 0.1% to 7,306.4 points, while the All Ordinaries Index (ASX: XAO) slipped 0.13% to 7,517.3 points.

The market was dragged down by the materials sector, which fell 1.4%, as iron ore and gold prices retreated. The major miners such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) all closed lower, while South32 Ltd (ASX: S32) slumped 2.6% after taking a $1.3 billion impairment on its Taylor deposit in the US.

The lithium sector also suffered heavy losses, after Core Lithium Ltd (ASX: CXO) forecast lower production and higher costs at its Finniss mine in the Northern Territory. Core Lithium shares plunged 17.2%, while other lithium producers such as Alkane Resources Limited (ASX: ALK), Liontown Resources Limited (ASX: LTR) and Pilbara Minerals Ltd (ASX: PLS) also declined.

On the positive side, the energy sector rose 2.2%, as oil prices rose on Friday amid supply concerns. Woodside Petroleum Limited (ASX: WPL) gained 2.3%, while coal miners such as New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC) also advanced.

The financial sector was mostly flat, with the big four banks posting modest losses. National Australia Bank Ltd (ASX: NAB) was the worst performer, down 0.8%, while Commonwealth Bank of Australia (ASX: CBA) was the best, down only 0.1%. Suncorp Group Ltd (ASX: SUN) dipped 0.1% after ANZ Banking Group Ltd (ASX: ANZ) agreed to give more time to the competition watchdog to review its $4.9 billion acquisition of Suncorp’s banking arm.

Investors are now looking ahead to a big week of economic events, including the second-quarter inflation figures and June retail sales data from the Australian Bureau of Statistics, which could have implications for the Reserve Bank of Australia’s interest rate decision on August 1.

The US Federal Reserve, the Bank of England and the Bank of Japan will also hand down their rate decisions this week, with the Fed expected to hike rates for the first time since 2018.

“It’s a huge week for investors – it arguably doesn’t get much bigger than this,” said eToro market analyst Josh Gilbert.

“The inflation data could be crucial in deciding whether the RBA raises interest rates at its August meeting, while the Fed is widely expected to signal a tapering of its bond-buying program.”