Australian Stock Market Report - Midday

Local stocks are attempting to make it six wins in a row, despite a weak lead from offshore markets. European markets fell for the first time in eight sessions overnight on concerns about Spanish debt, while US markets eased on mixed economic data. Our market fell in early trade in response to the expiry of the December futures contract.

Financial stocks have shrugged off a weak start and are generally firmer at lunchtime in the East. Shares in the Commonwealth Bank (CBA) have gained 0.4pct to $50.71 however the ANZ (ANZ) is trading down 0.8pct to $23.63.

The big miners have eased in response to weaker metals trade in London overnight, with BHP Billiton (BHP) off 0.2pct to $45.28 and Rio Tinto (RIO) lower by 0.2pct to $86.81.

Virgin Blue Australia (VBA) is trading up 7.1pct to $0.455 after the competition watchdog reversed its earlier decision and said it would now not oppose VBA forming alliances with Air New Zealand (AIZ) and Etihad Airways. VBA and AIZ plan to form an alliance on the trans-Tasman route while V Australia will fly to Abu Dhabi from Sydney and Brisbane under a partnership with Etihad.

The Australian dollar has lost ground against the major currencies and at midday in the East is worth US98.69c, £0.6344 and €74.62c.