Australian Stock Market Report - Midday

Investors appear to be sitting on the sidelines in early trade, ahead of the Reserve Bank rate decision later this afternoon and the start of the two day US Federal Reserve meeting, where it's expected the Central Bank will inject a large amount of stimulus into the economy.

Financial stocks are generally weaker, with the big four all off by around 0.4pct.

Index leader BHP Billiton (BHP) has eased by 0.1pct to $42.26 despite firmer metals trade in London overnight.

Energy stocks look strong, with the price of oil rallying by 2pct overnight to just under US$83 a barrel.

Retail stocks also look strong ahead of the RBA's decision, where it's tipped rates will be left on hold.

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