Australian Stock Market Report - Midday

Financial stocks are under the most pressure, with the sector lower by 1.7pct. Shares in MQG have fallen 6.5pct to $47.07 after the investment bank tentatively lifted its guidance, but failed to provide much assurity. Among the majors, Westpac (WBC) is weakest, down 3pct to $22.55 with concern about the financial health of the Eurozone still impacting the banks.

The materials sector is down 0.7pct despite firmer metals trade in London, while a firmer oil price has failed to lift the energy sector which is down 1pct.

Elsewhere shares in David Jones (DJS) have gained 1.5pct to $4.68 on a strong 1H sales result. Hearing implant maker Cochlear (COH) has gained 4.1pct to $63.92 after posting a record 1H profit and in the industrials space, Bradken (BKN)is up 12.1pct to $6.56 after flagging an improvement in trading conditions despite a 1H loss.

The Australian dollar is worth US86.44c, £0.5548 and €63.3c.