The Market is up 13. Our futures were up 28 this morning after the Dow Jones finished up 131 on below average volumes. The Dow was up 134 at best, on good weekly jobs numbers ahead of official jobs numbers tonight, news of monetary easing in the eurozone and strong earnings numbers from the information technology sector.

The European Central Bank (ECB) has cut interest rates for the first time in 10 months to 0.50% down from 0.75%. It was well flagged. The ECB also indicated that it was prepared to cut rates again to boost growth and would contemplate negative rates … the euro fell on the prospect.

Weekly jobless claims were down 18,000 to a five-year low of 324,000, beating the forecast 345,000 and the previous reading of 342,000. Non farm payrolls and more employment data out tonight. The US trade deficit fell from $43.63 billion to $38.83 billion, a 2.8% fall in imports outpaced a 0.9% fall in exports. The forecast was for a $42.50 billion fall.

European markets mixed — UK FTSE up 0.15%, German DAX up 0.61%, France up 0.05%, Spain down 0.15%, Italy down 0.12%.

Metals mixed — copper up 0.83%, nickel down 0.97%, aluminium down 1.14%, lead down 1.85%. Spot iron ore was down $4.70 to $129.40.

  • Westpac (WBC) — Has increased their 1H cash profit by 10% to $3.53 billion which was better than the expected $3.317 billion. The bank also announced a special dividend of 10c. The bank said they would raise their interim dividend to 86c from 82c and would consider paying special dividends rather than share buybacks in future in order to distribute franking credits. CEO Gail Kelly said “Australian economic conditions have softened in the first six months of the year. WBC is up 0.29% to 3399.5c.
  • Macquarie Group (MQG) — Posted a net profit of $851 million up 17% above guidance in February for a number around $813 million. Revenue in the period was $6.7 billion up 4%. Final unfranked dividend of 75c brought the total dividend to 125c, 40% franked. The bank said “while market volatility makes forecasting difficult, subject to market conditions it is currently expected that the FY14 net profit contribution from operating groups will be up on FY13”. MQG is up 8.95% to 4240c.
  • JB Hi-Fi (JBH) — Has issued a profit upgrade. The company raised their expectations for annual profits after stronger sales at their Australia and New Zealand stores. The company now expects profit to be in the range $112 million-$116 million — up from $108 million-$112 million. Like-for-like sales was up 3% in the January-April period. JBH is up 6.97% to 1658c.
  • Qantas (QAN) — Has reduced the number of seats in the domestic market for a second consecutive month. The company said “Qantas domestic is still struggling with capacity, Jetstar is doing well”. QAN is up 0.27% to 185.5c.
  • Rate cut more likely — A pre-budget rate cut next week is looking more and more likely after yesterday’s weaker than expected building industry figures. Financial markets suggest there is a 50% or more chance of an official rate cut next Tuesday and all but certain there will be a rate cut by early June.