LUNCHTIME REPORT
(12.30pm AEDT)

The Australian share market has started the trading week on a positive note, after European and US share markets posted strong weekly gains. At lunchtime in the East, the All Ordinaries Index (XAO) is up 25.8pts or 0.6pct to 4390.5.

Mining stocks are posting solid gains, with the expected Senate passing of the Mineral Resources Rent Tax (MRRT) not expected to have an impact on the materials sector. Shares in Fortescue Metals Group (FMG) are up 3.1pct to $5.98 while BHP Billiton (BHP) has added 1.4pct to $35.46.

Energy stocks are also looking attractive after oil rallied by 2pct on Friday to above US$107 a barrel. Caltex (CTX) is up 1pct in early trade to $14.07.

Shares in upmarket retailer David Jones (DJS) are in a trading halt at the company's request following press reports the company is expecting a 50pct slump in its credit card earnings. A board meeting has been scheduled for tomorrow morning to discuss the company's strategy. David Jones is scheduled to release first half results on Wednesday. DJS last traded at $2.73.

The Ten Network (TEN) is firmer by 3pct with the company set to undergo a strategic review. There are also reports TEN Could be looking at selling its outdoor advertising business EYE Corp.

The Australian dollar is worth US105.95c at 12.30pm AEDT. It is also buying £0.6692 and €80.43c.