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.
ASX rallies on weaker inflation data, oil rallies on supply curbs, Fortescue jumps
The local market opened weaker on Wednesday, hit by worsening sentiment offshore, but ultimately finished 0.2 per cent higher. The rally was led by the materials and energy sector which both gained 1.2 per cent, buoyed by news that a disagreement between Iraq and Kurdish officials had led to a reduction in supply. The healthcare and real estate sectors finished lower, down 0.8 and 0.4 per cent, on news that inflation has begun to moderate. The CPI data showed a slowing to 6.8 per cent for the 12 months, much lower than the 7.2 per cent predicted by experts, with housing and food still the biggest contributors, up 9.9 and 8.0 per cent respectively. On a company specific level, Deterra Royalties led the market, gaining 5.5 per cent, while Fortescue (ASX:FMG) was boosted by a rally in the iron ore price, finishing 2.9 per cent higher.
ALS upgrades profit, HMC adds medical portfolio, ASX investigation launched
Testing service provider ALS Corporation (ASX:ALS) gained 5.5 per cent after the company upgraded profit guidance for the financial year by around $10 million. It will also sell its asset care business to SRG Global for $80 million, which boosted the result, with management citing continuing confidence in its ability to navigate the challenging economic headwinds. The Australian Stock Exchange (ASX:ASX) finished slightly higher despite being notified of an ASIC investigation to determine if it had breached its obligations in regards to the CHESS replacement program. The local currency weakened after news of slowing inflation, with expectations now that the RBA will not raise rates next week. Shares in HMC Capital (ASX:HMC) finished 1.1 per cent higher after the company confirmed it had purchase $1.2 billion worth of healthcare properties from the Healthscope stable.
Risk on rally led by tech, semiconductors jump, Lulu Lemon upgrade
All three US benchmarks rallied strongly overnight, led by the Nasdaq, which finished 1.8 per cent higher. The Dow Jones and S&P500 lagged, gaining 1 and 1.4 per cent respectively, with the strength in semiconductors the key contributor. Micron (NYSE:MU) gained more than 7 per cent despite the company reporting its largest ever quarterly loss as demand for chips is set to surge as artificial intelligence once again comes into focus. It was a similar story for German chip manufacturer Infineon, which added 7 per cent, after the company upgrade its outlook for 2023 citing strong demand from the automotive unit. Shares in Alibaba (NYSE:BABA) continue to rally, gaining 1.5 per cent as Jack Ma returns to the spotlight following the recent company split. Finally, shares in Lululemon (NYSE:LULU) were more than 12 per cent higher, as revenue remained flat despite expectations that it would fall significantly.
