MIDDAY REPORT
(12pm AEST)

The Australian share market is posting solid gains in early trade, on the back of positive offshore leads and generally firmer commodity prices. At lunchtime in the East, the All Ordinaries Index (XAO) is firmer by 74.5pts or 1.6pct to 4613.9.

Overnight, the US Dow Jones Index experienced its strongest trading day of 2011, thanks to impressive earnings results from a number of companies including IBM. Apple released results after the bell, smashing expectations. The company sold 20.34 million iPhones during the quarter, 9.25 million iPads and 3.95 million Mac computers helping its net profit more than double to US$7.31 billion.

Financial stocks are leading the gains on the local share market. In Europe overnight, the STOXX Europe 600 Banks Index rose by 1.4pct on hopes European leaders will be successful in agreeing on a bail-out deal for Greece. Our financial sector is higher by 2pct at lunchtime in the East with the ANZ (ANZ) the best out of the big four, firmer by 2.4pct to $21.26.

BHP Billiton (BHP) has today reported June quarter production figures, which were largely in line with expectations. BHP shares are up 1.9pct to $43.41 while Rio Tinto (RIO) is firmer by 1.5pct to $82.52.

NewsCorp (NWS) shares rose 5.5pct in New York trade overnight as Chairman and CEO Rupert Murdoch testified before a UK parliamentary inquiry into the News of the World phone hacking scandal. In early trade on the local market, NWS is up 4.5pct to $15.15, continuing to recover from Monday's two year low of $14.17.

Woolworths (WOW) has today reported a 4.7pct lift in FY sales to $54.1 billion. The company has hailed the result as an achievement due to what it called a very challenging year.

Overnight in the US, there was a strong surge in June housing starts. Building materials company James Hardie (JHX) has seen its share price rise 6.5pct today to $6.07 on the back of the results.

Port and rail operator Asciano Group (AIO) has risen 4.6pct to $1.69 after securing a new five year container contract with Danish shipping giant Maersk Line.

The Australian dollar is buying US107.47c, £0.6666 and €75.84c.

(From Juliette Saly, CommSec Market Analyst)