Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
US inflation bumps market higher, technology boom, AGL capitulates
The weakest monthly inflation print in close to two years offered the best possible backdrop for the local market on Monday, with the S&P/ASX200 gaining 1.5 per cent.
Technology was the standout, up 4.6 per cent, with only a small handful of companies falling on a buoyant day for the market, led by AGL Energy (ASX: AGL) which fell 1.7 per cent.
The company dragged the utilities sector lower after effectively capitulating to the pressure from billionaire Mike Cannon-Brookes.
Management announced they would withdraw their proposal to split the company in two, with both Chairman Peter Botten and CEO Graeme Hunt resigning to allow the company to pursue a fresh start.
With Cannon-Brookes amassing 11 per cent of the shares on the issue it was becoming clear the demerger was unlikely to proceed but the company is now left in limbo and potentially ripe for a takeover bid; the result dragged the utilities sector being the only detractor on the market.
Shares in ANZ (ASX: ANZ) overcame news of another court proceeding being initiated by ASIC, this time in relation to the balances and fees charged on credit card accounts.
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Biden spurs infant formula sector, Liontown extends, big day for tech
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Australian infant formula makers were once again in the spotlight, this time for good reasons after President Biden announced that the government would be purchasing 27.5 million bottles of formula for US families amid a domestic and global shortage of the product.
The shortage comes after Abbott Laboratories recalled their products and sent shares of Bubs (ASX: BUB) up 40.2 per cent and A2 Milk (ASX: A2M) up 10 per cent with the former negotiating a contract directly with the government.
The iron ore price continues to rally as Chinese lockdowns continue to ease, whilst lithium miner Liontown (ASX: LTR) gained another 5.3 per cent.
The stock rallied after Tesla agreed to extend a negotiation period in which both companies are seeking to come to terms on supply contracts totalling 150,000 tonnes.
Technology was clearly back in favour, with Zip Co (ASX: Z1P) adding 14 per cent, Block (ASX: SQ2) 10.9 per cent and Tyro Payments (ASX: TYR) 10.2 per cent.
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US closed for memorial day, but futures spike on end to China lockdowns
