Local stocks are trading flat at lunchtime in the East, with losses from the banks offsetting gains from mining stocks.

Financial stocks are all trading lower, on the second day of the Senate Inquiry into the banking industry. Shares in the ANZ (ANZ) are worst out of the big four, down 1.2pct to $23.82. Smaller lenders continue to be impacted by concerns they will lose out under the government’s financial reforms announced over the weekend. Shares in Bendigo and Adelaide Bank (BEN) are down another 2.3pct to $9.68 while the Bank of Queensland (BOQ) is lower by 1.3pct to $10.83.

Mining stocks are also stronger, in response to firmer metals trade in London. BHP Billiton (BHP) is up 0.6pct to $45.71 while Rio Tinto (RIO) is stronger by 0.7pct to $88.35.

AGL energy (AGK) has slumped 4.5pct to $15.14 after the company missed out on picking up any assets in the $6 billion privatisation of NSW Energy. It’s believed Hong Kong based TruEnergy has snapped up Energy Australia, while Origin Energy (ORG) has bought both Integral Energy and Country Energy. Shares in ORG are in a trading halt, last at $16.80.

Dwelling commencements fell 13.2pct in the September quarter, well below expectations. Other economic data released today reveals business conditions remained soft in November while confidence slumped.

The Australian dollar is worth US99.46c, £0.6271 and €74.34c.