Australian stocks are trading relatively flat at lunchtime in the East following a mixed lead from Wall Street and as losses from the banks cancel out gains made elsewhere on the market.

Financial stocks are among the biggest drags, with shares in Westpac (WBC) down 0.6pct to $21.79 and the Commonwealth Bank (CBA) off 0.8pct to $49.51. The NAB (NAB) has lost 0.3pct in early trade to $24.37 while the ANZ (ANZ) is off 0.3pct to $22.75.

Mining stocks are faring better in the wake of positive momentum on the London Metals Exchange. BHP Billiton (BHP) and Atlas Iron (AGO) have entered into discussions which could see AGO use one of BHP's rail lines in the Pilbara. Shares in BHP are up 0.6pct to $43.72 while AGO is firmer by 5.8pct to $2.90.

Also in focus are AXA Asia Pacific (AXA) and AMP Limited (AMP) after the board of AXA unanimously endorsed the $13 billion takeover bid from AMP and AXA's parent company, AXA SA. The deal, worth $6.43 cash and stock per AXA share, is subject to shareholder approval and AMP's stock price holding above $4.50. AXA shares are up 0.5pct to $6.23 while AMP has risen 0.2pct to $5.17.

The CEO of Qantas (QAN) Alan Joyce has today announced that around 40 Rolls Royce engines on the global A380 fleet will need to be replaced. QAN shares are down 0.4pct to $2.66.

Upmarket retailer David Jones (DJS) shares are trading up 3.1pct to $4.63 after the company reiterated its full year guidance in the wake of flat 1Q sales.

The Australian dollar is worth US98.17c, £0.6169 and €72.38c.