Australian stocks are trading flat at lunchtime in the East, but have managed to recover from losses reached early in the session. At its lows, the All Ordinaries Index (XAO) was trading down 15.5pts to 4799.

Financial stocks are generally giving back the gains they made yesterday, with the NAB (NAB) down 0.8pct to $23.77 and ANZ (ANZ) shares off 0.6pct to $23.36.

Mining stocks are faring better, with shares in Rio Tinto (RIO) up 0.7pct to $87.92 on firmer metals trade in London overnight.

Energy stocks though are losing ground, after the price of crude oil eased from two year highs overnight as the US dollar rallied. Shares in Santos (STO) are down 1pct to $12.53 while Caltex (CTX) has eased by 2.4pct to $14.15.

The Federal Court in Sydney is today hearing a case between Qantas (QAN) and Rolls Royce, the suppliers of the engines on the airline´s A380 aircraft, which have been plagued by maintenance issues. Shares in QAN are down 1.5pct to $2.65 at lunchtime in the East.

Torrential rain in Eastern states has prompted the government´s chief forecaster to slash predictions for wheat exports. However PrimeAg (PAG) says the heavy rains haven’t changed its forecasts for 2010/11. PAG shares are up 0.7pct at lunchtime to $1.46 while Graincorp (GNC) is firmer by 2.3pct to $6.60.

Shares in Fairfax Media (FXJ) are up 0.4pct to $1.45 following news mining billionaire Gina Rinehart has bought a $50 million stake in the company. Ms Rinehart also snapped up a stake in the Ten Network (TEN) just weeks ago. TEN shares are down 0.3pct to $1.495.

The Australian dollar is buying US98.48c, £0.6247 and €74.23c.