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 sinks on inflation, energy prices, Whitehaven tanks, China hits materials
The local sharemarket was dragged lower by the energy sector, which fell 2.5 per cent, sending the All Ordinaries (ASX:XAO) down 1.5 and the S&P/ASX200 (ASX:XJO) down 1.6 per cent. The driver was continued weakness in the price of coal and other energy sources, with Newcastle coal prices falling another 4 per cent on Wednesday, after losing 12 per cent the day prior. The result was a 6.5 per cent fall in Whitehaven (ASX:WHC) and 4.2 per cent in New Hope (ASX:NHC). The story extended into the broader commodity sector, with materials sinking 2.2 per cent, on signs that the Chinese economic recovery will not be as infrastructure driven as expected. BHP (ASX:BHP) shares fell 3.4 per cent on concerns that demand from India, China and broader Asia will remain weak. This came following news that Chinese PMI manufacturing data moved further into constractionary territory.
Bank of Queensland sinks on risk, money-laundering concerns, 360 delivers strong result
Regional banker Bank of Queensland (ASX:BOQ) took a significant hit, falling 5.3 per cent after the company confirmed it had entered an enforceable undertaking with both AUSTRAC and APRA. The restrictions related to significant issues within their risk management process but particularly around their application of Anti-Money Laundering and Counter Terrorism Financing laws. The result will be a $50 million risk reserve and closer regulation. Shares in private social networking tech firm Life360 (ASX:360) gained 1 per cent, outperforming the broader market after management flagged strong momentum in the business that had sent users up 33 per cent to 51 million and far better than expected user retention on its flagship mobile up.
US markets pare losses on rate pause signal, Hewlett Packard sinks, travel boosts American
All three US benchmarks finished lower by managed to pare larger losses, with the Dow Jones down 0.4 per cent and both the S&P500 and Nasdaq falling 0.6 per cent. The intraday rally came after Federal Reserve officials suggested they may be ready to ‘skip’ a June rate hike in light of growing signs of economic weakness around the world. Interestingly, there are now some 1.8 jobs for every unemployment person as the employment market remains tight. Shares in Hewlett Packard (NYSE:HP) fell by more than 7 per cent after the company reported a weaker than expected profit result pushed lower by a 22 per cent fall in revenue. Much of the pain came from the personal computer system sales, which fell 29 per cent in the quarter. American Airlines (NYSE:AAL) managed to outperform with management citing continued strong travel demand for an increase in profit guidance.
