The Australian sharemarket bounced back from its seven-week low, as pressure from the bond market eased and traders dialled back their expectations for further interest rate increases by the RBA.

The US stock market fell from its records on Friday and joined a worldwide drop for stocks after higher oil prices sent a shiver through the bond market.

The Australian sharemarket has fallen at the open as higher oil prices and growing inflation concerns sent a shiver through the bond market over the weekend.