The Australian sharemarket has started off the day slightly stronger with the All Ordinaries index up by 0.1pct or 6.3pts to 4917.9 after receiving a positive lead from both U.S and European markets overnight.

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The miners are a little stronger after both Rio Tinto (RIO) and iron ore producer, Fortescue Metals (FMG) posted solid quarterly production figures yesterday. FMG also announced that it is contemplating the borrowing of US$2.5 billion to fund its plan to expand iron ore production. RIO is up 0.45pct or 39cents to $87.19 and FMG is off by 0.69pct or 5cents to $7.22 after gaining 8 pct yesterday.

Qantas (QAN) and Virgin Blue (VBA) both received broker downgrades yesterday, partly due to the effects that a higher oil price could have on their bottom line. QAN is off 0.81pct or 2cents to $2.45 and VBA has fallen 3.61pct or 1.5cents to $0.40.

Food manufacturer, Goodman Fielder (GFF), the owner of brands such as Helga's and Wonder White has fallen around 3.3pct so far this week after the company's Chief Executive, Peter Margin announced he would be leaving the company at the end of April. GFF is up 0.38pct or 0.5cent to $1.315 in early trade.

Kathmandu (KMD) is up 16.67pct or 23cents to $1.61 after the clothing and adventure equipment retailer said that it is now expecting half year group sales will rise by upto 15pct to over $98.17 million.

The big four banks started off the session mixed however all managed to turn positive at lunch with Westpac (WBC) up 0.4pct or 9cents to $22.49, Commonwealth Bank of Australia (CBA) up 0.25pct or 13cents to $51.57 and both ANZ Banking Group (ANZ) and National Australia Bank (NAB) edging higher.

On the economic front, the consumer sentiment reading has fallen amongst Australians by 5.7pct in January, with the Queensland floods and heavy rains affecting confidence levels.

The Australian dollar (AUD) is currently stronger and buys US99.81c.