MIDDAY REPORT
(12.15pm AEST)

Local stocks are under heavy selling pressure in early trade, following another slump in US equities overnight and falls on the commodities markets. Wall Street recorded its biggest one day fall in nearly two months as the stalemate over raising the US debt ceiling continues. At lunchtime in the East, the All Ordinaries Index (XAO) is down 50.6pts or 1.1pct to 4562.

Financial stocks are down around 1pct, while energy and mining players have also come under pressure.

The only sector which is not being heavily sold off is the telcos, due to the fact Telstra (TLS) shares are steady at $3.02.

Wesfarmers (WES) has today released 4Q sales numbers, with its Coles and Bunnings divisions missing expectations. Coles sales were up 6.7pct to $31.8 billion in the quarter, while Target sales were down 1.2pct and Kmart rose 0.4pct. Shares in WES are lower by 1.7pct to $29.56 in early trade.

Commonwealth Property Office Fund (CPA) has sold one of its Sydney buildings for $395 million, sending its shares higher by 3.8pct to $0.95. The building, at 259 George Street in the centre of Sydney, houses a number of companies including Suncorp, OneSteel, a Fitness First gym and a Lindt café.

The Australian dollar remains the traveller's friend and is currently buying US110.3c, £0.6758 and €76.85c.

(From Juliette Saly, CommSec Market Analyst)