The Australian share market is trading in the red at lunchtime, however we are not experiencing the falls that were predicted in the wake of a one percent drop on Wall Street overnight. The All Ordinaries Index (XAO) is lower by 12.5pts to 4416.2.

The banks are all trading lower, while the big miners are recording strong gains in the wake of firmer metals trade in London overnight. Shares in BHP Billiton (BHP) are up 0.7pct to $39.02 while Rio Tinto (RIO) has increased by 1pct to $68.40.

Newcrest Mining (NCM) shares are down 0.3pct to $33.21 after the company today released quarterly production numbers. NCM reported a 26pct rise in 4Q gold production, in line with guidance.

In the energy sector, Santos (STO) shares are down 1.2pct to $13.58. The energy producer today reported a 20pct jump in 2Q revenue, thanks to higher oil and gas prices which offset an 11pct fall in production caused by flooding in central Australia's Cooper Basin. STO has also reiterated its annual production guidance for the year.

Foster's Group (FGL) shares are trading higher by 1pct to $5.90 after an internal leak caused the company to disclose its predictions for its wine business to the market. FGL predicts the Australian and New Zealand wine business to add around $84 million to its bottom line.

Telstra (TLS) shares are steady at $3.22. After the bell yesterday, the telco announced it would be cutting 330 middle management jobs, or around 10pct of its workforce.

The Australian dollar is buying US87.57c.