Local stocks are posting modest gains in early trade, following a strong offshore rally. European markets posted their seventh win in a row overnight, while US markets gained on strong retail sales data.

Financial stocks are mixed, with shares in Westpac (WBC) up 0.7pct to $23.17 and the ANZ (ANZ) down 0.4pct to $23.86.

Mining stocks have eased, following a slump in metals trade in London overnight. BHP Billiton (BHP) is lower by 0.3pct to $45.52 while Rio Tinto (RIO) is down 0.6pct to $87.41.

The Australian Competition and Consumer Commission (ACCC) says it won’t oppose the takeover of the Australian Securities Exchange (ASX) by the Singapore Exchange. ASX shares are trading up 0.2pct to $38.59.

Shares in surf-wear retailer Billabong (BBG) have dropped 9pct to $8.09 on a profit warning.

The Australian dollar is buying US99.63c, £0.6321 and €74.6c.