Local stocks are making modest gains in early trade, but appear to have run out of steam following yesterday’s rally. US and European markets advanced overnight on upbeat earnings results and stronger commodity prices.

Mining stocks are doing most of the work with index leader BHP Billiton (BHP) firmer by 0.8pct to $45.79.

Financial stocks are generally lower, with the NAB (NAB) down 0.8pct to $24.03.

Shares in fashion retailer Noni B (NBL) have eased by 10pct to $1.025 after the company issued a profit downgrade in the wake of a fall in like for like sales.

Foster’s Group (FGL) is up 0.5pct to $5.65 after telling the market the demerger of its wine and beer units is progressing well.

The Australian dollar is buying US99.66c, £0.6445 and €76.06c.

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