Local stocks eased into the red today, as a bout of afternoon selling dragged down financial, mining and energy stocks. The All Ordinaries Index (XAO) closed down 24.3pts or 0.5pct to 4791.7 while the S&P/ASX 200 Index (XJO) eased by 26.9pts or 0.6pct to 4699.9.

The big four banks, which had attempted a rebound around lunchtime, all eased into the red after Treasurer Wayne Swan indicated his office would deliver a reform to the financial industry within the week. Shares in the ANZ Bank (ANZ) fell 1.5pct to $23.15 after announcing it expects lending margins to be under pressure for at least another 18 months as it refinances cheap debt raised before the 2008 global financial crisis. Shares in Westpac (WBC) fell 0.8pct to $21.76 while the NAB (NAB) eased 1.4pct to $23.62 and the Commonwealth Bank (CBA) lost 0.3pct to $49.60.

A Senate Committee into the government's controversial mining tax today heard Australia´s two biggest miners would have been reluctant to accept a pre-election tax deal, had they known a key aspect may later be changed. BHP Billiton (BHP) shares today dropped 0.5pct to $44.86 while Rio Tinto (RIO) came off its earlier highs, closing up just 0.2pct to $87.51.

Energy stocks also suffered, after the price of crude oil came off two year highs. At 4pm AEDT the Nymex contract was trading down 1.1pct to US$87.68 a barrel. Shares in Caltex (CTX) eased by 2.5pct to $14.14 while Santos (STO) dropped 1.4pct to $12.47 and Oilsearch (OSH) fell 0.1pct to $7.

In the media space, Fairfax (FXJ) dropped 1.7pct to $1.42. Billionaire Gina Rinehart has picked up a 2pct stake in the company, just weeks after raiding the Ten Network (TEN). TEN shares fell 0.7pct to $1.49.

Qantas (QAN) shares dropped 1.9pct to $2.64 as the airline took Rolls Royce to the Federal Court in Sydney. Rolls Royce is the maker of the airline's A380 fleets engines, which have been experiencing maintenance issues.

Contractor Downer EDI (DOW) today announced further delays to the delivery of new Waratah commuter trains for Sydney's CityRail network. DOW shares fell 0.2pct to $4.30.

Research and development company Silex Systems (SLX) fell 10.8pct to $5.72 after tapping the market for $89.1 million by the issuing of new shares at $5.40 each.

A key leading indicator for home construction barely moved in October. Loans for the construction of dwellings rose by just 0.1pct in the month, only the second increase in a year. The proportion of first home buyers in the market hit six-year lows in October. Overall, the value of housing loans rose by 2.2pct in October with the number of loans to owner occupiers up 1.9pct. But the number of home loans is 20.6pct lower than a year ago. Lending commitments that were actually advanced in October hit eight month lows of $12.5 billion in October and were 17.6pct lower than a year ago.

The Australian dollar eased against the major currencies in afternoon trade and at 4.30pm AEDT was worth US97.97c, £0.6234 and €74.05c.

On the market overall, a total of 2.48 billion shares were traded, worth $5.2 billion. 505 were up, 629 were down and 368 were unchanged.

At 4.15pm AEDT on the ASX24, the futures contract was at 4700 down 33pts.

No market moving data or corporate activity is scheduled for release tonight in the US.