Local stocks are recovering from yesterday’s losses thanks to strength from the key blue chip players. Overnight, Wall Street only made slight gains, but importantly the S&P 500 managed to reach its highest closing level since September 2008.

Financial stocks which were sold off sharply in afternoon trade yesterday, are generally performing well today thanks to gains in banking stocks in the US. Shares in Westpac (WBC) are the best out of the big four, up 1.8pct to $22.15 while the Commonwealth Bank (CBA) is higher by 0.7pct to $49.96. However the Bank of Queensland (BOQ) has dropped 6.7pct to $11.11 following a profit downgrade.

Mining stocks are trading well on the back of firmer metals trade in London. BHP Billiton (BHP) has added 0.7pct in early trade to $45.18 while Rio Tinto (RIO) is firmer by 0.3pct to $87.74. The price of gold eased in New York trade as safe haven flows switched into US government bonds. The Comex price is trading at US$1384.40 an ounce at 11.30am AEDT. Shares in gold producer Newcrest Mining (NCM) are lower by 1.8pct to $40.61

Elsewhere today, discount retailer The Reject Shop (TRS) has issued a profit downgrade, blaming the recent November rate hike for a slowdown in retail trade. TRS has dropped 21pct to $13.55 in early trade.

The Ten Network (TEN) has today confirmed James Packer, Lachlan Murdoch and Gina Rinehart will join the company’s board from Monday. Shares in TEN are up 0.3pct to $1.495 in early trade.

The Australian dollar has gained half a cent against the greenback following data showing 54,600 jobs were created in the Australian economy in November, well above expectations. Unemployment levels have dropped to 5.2pct. The Aussie is buying US98.4c at 11.30am AEDT, £0.6194 and & euro;73.84c.