Stocks to watch on the Australian stock exchange:

BHP – BHP BILLITON

FMG – FORTESCUE METALS GROUP

RIO – RIO TINTO

The price of iron is hanging on above the $US57 mark despite falling 83 US cents to $US57.09.

MYR – MYER

Solid sales growth at Myer over the Christmas period is not expected to reverse the department chain’s long run of sliding profit.

ORG – ORIGIN ENERGY

STO – SANTOS

Oil prices have surged, with WTI crude up 1.17 per cent, or 66 US cents, at $US38.50, while Brent crude is up 0.85 per cent, or 34 US cents, at $40.39.