Local stocks are tracking higher in early trade, thanks to stronger commodity prices and a positive lead from European markets.

Mining stocks are posting the best gains on the back of firmer metals trade in London overnight. Index leader BHP Billiton (BHP) has added 0.8pct to $45.19 while Rio Tinto (RIO) is firmer by 0.8pct to $86.11.

However Energy Resources Australia (ERA), the world’s fourth largest uranium producer, has slumped on a profit downgrade. ERA shares are down 8.9pct to $12.

Financial stocks are generally firmer, with the ANZ (ANZ) the best out of the big four, up 1pct to $23.50.

Shares in Virgin Blue Australia (VBA) have risen 1.1pct to $0.455 on news the airline’s Chief Financial Officer will step down in March due to personal reasons.

Lend Lease (LLC) has today confirmed it has bought the engineering and construction business Valemus from a German firm for $960 million. LLC shares are up 3.9pct to $8.58.

The Australian dollar is buying US99.24c, £0.6395 and €75.6c.

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