Local stocks have kick started the trading week on a strong note, thanks to a positive offshore lead. On Friday night in New York, the S&P 500 Index hit its highest level since the collapse of Lehman Brothers in 2008.

Reserve Bank Governor Glenn Stevens has today faced a Senate inquiry into the banking industry. Governor Stevens told the inquiry his job is neither to defend nor attack the big banks. Financial stocks are all posting solid gains in early trade, with Westpac (WBC) up 0.8pct to $22.74, the NAB (NAB) firmer by 0.8pct to $24.41 and the Commonwealth Bank (CBA) up 0.8pct to $50.97. Shares in the ANZ (ANZ) have firmed by 0.4pct to $23.92 and Macquarie Group (MQG) is up 1.4pct to $37.29.

Mining stocks are also performing well, despite generally weaker commodity prices. Shares in BHP Billiton (BHP) have added 0.4pct to $45.64 while Rio Tinto (RIO) has gained 0.7pct to $88. Fortescue Metals Group (FMG) has added 1,5pct to $6.64, after announcing it has raised US$1.5 billion through the issuing of new notes.

Pike River Coal (PRC), the company at the centre of the fatal New Zealand mine explosion last month, will be placed into receivership. Shares in PRC have not traded since the explosion when they dropped to $0.61. New Zealand Oil and Gas (NZO), which has a 29.4pct stake in PRC is steady at $0.68.

Fairfax Media (FXJ) says it has purchased an Australian and New Zealand focused tendering website TenderLink for $16.43 million. It is the southern hemisphere´s largest tender notification provider, with 99pct of all publicly advertised tenders from the public and private sectors passing through its systems. FXJ shares are up 0.7pct to $1.425.

Tabcorp (TAH) has announced it will boost its investment in its Queensland casinos by $450 million. TAH shares are up 0.6pct to $7.23.

The Australian dollar is worth US98.46c, £0.6236 and €74.66c.