The Australian sharemarket received a positive lead from U.S and European markets overnight, thanks in part to solid earnings results from some of the biggest names in business. The world's largest chain of hamburger fast food restaurants, McDonald's (MCD;us) recorded a 2.1pct rise in fourth quarter net profit. MCD;us shares gained a modest 0.493pct. Financial services company, American Express (AXP;us) recorded a 48pct jump in fourth quarter profit.

The All Ordinaries index (XAO) is up 0.6pct or 31.1pts to 4919.2. Almost all sectors are gaining, with the miners, energy stocks and financials helping lift the market.

The world's fifth largest gold producer, and Australia's largest, Newcrest Mining (NCM) released a market update which showed a 7pct increase in gold production between October and December 2010. NCM however downgraded its full year gold production forecast. NCM shares are still up 1.57pct or 60cents to $37.63.

Australia's second largest airline, Virgin Blue (VBA) cut its profit forecasts for the last 6 months of calendar year 2010 to between $23 and $26 million. VBA shares are off 3.53pct or 1.5cents to $0.41.

Oil and gas company, Oilsearch (OSH) posted a 16pct rise in fourth quarter operating revenue to US$164.7 million. Cash reserves are remaining solid at US$1.26 billion. OSH shares are up 0.3pct or 2cents to $6.79.

The big 4 banks are gaining by up to 0.6pct with Commonwealth Bank of Australia (CBA) the best performer.
Australia's largest miner, BHP Billiton (BHP) is up 0.65pct or 29cents to $45.21. Its competitor, RIO Tinto (RIO) is up 1.1pct or 94cents to $86.04.

Diversified property group, Mirvac (MGR) will take a $215 million provision against inventories off the back of weak sales and an oversupply of property in rural markets. MGR shares are 2.33pct or 3cents weaker to $1.26.

On the economic front, Australia's consumer price index (CPI) slowed to 0.4pct, which is significantly less than the expected 0.7pct rise. This increases the chances the Reserve Bank of Australia (RBA) will keep rates unchanged at the current 4.75pct cash rate for a while yet. More information on this will be released in the market wrap this afternoon.

The Australian dollar (AUD) fell back by around 0.4pct following on from the CPI data which was released at 11.30am (AEDT). The AUD currently buys 0.9936 USD.