Midday: Offshore leads lift ASX 0.3%

Market Reports

Strong offshore leads lifted the Australian share market at open, and while stocks have pared some gains, the local bourse is 0.3 per cent higher at noon. 
 
Bumper earnings from Westpac Banking Corporation (ASX:WBC) and Macquarie Group Limited (ASX:MQG) are buoying the financial sector, pushing  Macquarie Group to the best performer at noon and supporting all the Big Four Banks.   
 
Global stocks rebounded from a soft start to the month overnight, supported by the European Central Bank's decision to cut interest rates to a record low and declining US jobless claims ahead of the nation’s official monthly jobs report due later today.   
 
Figures

The S&P/ASX 200 index has gained 16 points and is sitting at 5,146. On the futures market the SPI is 11 points higher. 

Economic news

Australia's services sector continued to contract last month, at the quickest pace since the end of 2012. The Australian Industry Group and Commonwealth Bank of Australia’s (ASX:CBA) Performance of Services Index fell 5.5 points to 44.1 in April, remaining below 50 which indicates shrinking activity in the sector. 
 
Company news

Pilbara focused iron ore developer BC Iron Limited (ASX:BCI) has inked a deal which could see it acquire rights to three exploration projects in Brazil.
The Memorandum of Understanding has been signed as part of a strategic alliance between BC Iron and Cleveland Mining Company Limited (ASX:CDG). BC Iron says the deal introduces early stage greenfield opportunities to compliment its Pilbara focus appropriately. Shares in Cleveland Mining have sunk more than 10 per cent at noon, while shares in BC Iron are trading 1.29 per cent higher at $3.15. 
 
ERM Power Limited (ASX:EPW) has lowered its annual profit guidance range because of a longer than expected delay in arbitration for a construction dispute. The electricity generator and retailer expects to post a net profit of between $14 million and $26 million in fiscal 2013, down from a range of between $22 million and $26 million. Managing Director and CEO Philip St Baker says ERM continues to perform well overall but if the dispute is not resolved in this financial year the legal expenses will not be recovered before the company’s annual result. Shares in ERM Power have fallen 4.92 per cent and are trading at $2.51. 
  
Best and worst performers

The best performing sector is consumer discretionary gaining 20 points to 1,635. Shares in Southern Cross Media Group Limited (ASX:SXL) have risen 3.69 per cent and trading at $1.54. Shares in Seven West Media Limited (ASX:SWM) and David Jones Limited (ASX:DJS) are also stronger. 
 
The worst performing sector is consumer staples, falling 51 points to 10,431. Shares in Coca-Cola Amatil Limited (ASX:CCL) have fallen 1.79 per cent, trading at $14.58. Shares in Metcash Limited (ASX:MTS) and Goodman Fielder Limited (ASX:GFF) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,470 an ounce.
The Australian dollar is buying $US1.025.

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