Australian Stock Market Report - Midday

Local stocks are once again underperforming European and US markets, with the Australian bourse flat at lunchtime in the East.

The financial sector is generally weaker, with the ANZ (ANZ) down 0.9pct to $22.98 despite banking stocks leading the way on the Dow Jones Index overnight.

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Insurance stocks are faring better. Suncorp-Metway (SUN), which analysts expect will lose around 10pct in profits due to claims arising from the Queensland floods, is trading higher by 0.6pct to $8.55. IAG (IAG) shares are firmer by 1.6pct to $3.94 while QBE (QBE) has dropped 0.6pct to $17.74.

Mining stocks are flat in the wake of mixed commodity prices. BHP Billiton (BHP) is firmer by $0.03 to $44.98 while Rio Tinto (RIO) is steady at $85.07.

Coca-Cola (CCL) shares are trading up 2pct to $11.07 after the drinks maker indicated it is expecting FY10 profit to rise by 10pct, despite a dip in 2H sales.

The Australian dollar dipped briefly below parity against the greenback this morning but is currently worth US100.06c, £0.6447 and €76.01c.