Local stocks are trading flat at lunchtime in the East, following a volatile start to the trading year. US markets advanced overnight and commodities were stronger, however falls from banking and insurance stocks is keeping a cap on gains made on our market.

The recent floods in Queensland have investors concerned about the balance sheets of our insurers, with big falls coming from the major players today. Suncorp-Metway, which is trading under a deferred settlement code of SUNDA, has fallen 3pct in early trade to $8.35 while QBE Insurance (QBE) has lost 2pct to $17.78. IAG (IAG) is down 2.1pct to $3.80.

Among the big four banks, only the NAB (NAB) is trading higher, up 0.3pct to $23.78.

Material stocks are faring better, thanks to strong gains on the London Metals Exchange on Friday night. Shares in BHP Billiton (BHP) have added 0.3pct to $45.37 while Rio Tinto (RIO) is up 0.2pct to $85.62.

Telstra (TLS) shares are slightly firmer at $2.80.

The Australian dollar is worth US101.48c, £0.6554 and €76.08c.

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