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 (ASX:XAO) hits five month high, Fortescue sinks despite strong production, Macquarie takes earnings hit
The local share market posted another strong day, adding 0.7 per cent, as news of the Federal Reserve potentially pausing rate hikes boosted the property and technology sectors; up 3.3 and 2.2 per cent respectively. The likes of Goodman Group (ASX:GMG) and Scentre (ASX:CSG) gained 2.7 and 4.4 per cent each, on hopes that valuations may not fall as far as expected. The mining and energy sectors were the only detractors, down 1 and 0.5 per cent, with Fortescue (ASX:FMG) dragging the former lower. Shares in the iron ore miner fell 3.4 per cent despite recording iron ore shipments at the top end of guidance, being 48.9 million tonnes. It was the opposite story for Macquarie Group (ASX:MQG) which fell 4.4 per cent after management announced a weakening in profit on a slowdown in trading across global markets. The groups asset management division saw a significant reduction in earnings on less realisation, but banking and financial services remain strong.
Megaport jumps on upgrade, GQG joins Regal bidding party, Perpetual outflows grow
Technology connection firm Megaport (ASX:MP1) gained 14.4 per cent on Thursday, after the company delivered an early update showing that earnings would be near the top end of guidance, being $25.2 million for the year. This comes on the back of a series of new contract wins and expansion. Fund manager Perpetual (ASX:PPT) fell 1.5 per cent after the company announced another $5.1 billion in outflows in the quarter, following as investors leave the merged entity. Total assets remain above $212 billion, with the short-term increase coming from strong market performance. Sticking with funds management GQG Partners (ASX:GQG) fell just 0.6 per cent despite announcing it had entered the bidding war for prior investor Pacific Current Group (ASX:PAC) which is under an offer from Regal Funds Management’s Phil King.
Dow snaps winning streak, Meta surges on ad spend, Bank of Japan set to loosen rates
The threat of a stronger economy saw the Dow Jones snap its longest winning streak in close to 40 years, falling more than 200 points or 0.7 per cent. Among the drivers was news that the US economy expanded at a 2.4 per cent rate during the March quarter, faster than previously expected. The resilience of the economy is seen as a risk for continuing rate hikes. Elsewhere the focus was on the Bank of Japan which indicated it was in the midst of releasing its yield curve control to around 0.5 rather than 0.25 per cent, potentially harking the end of loose monetary policy. Shares in Meta (NYSE:META) were boosted by a stronger than expected result, which saw revenue increase by 11 per cent, fuelled by a rebound in advertising and AI-supported targetting. It was the opposite story for eBay (NYSE:EBAY) which fell more than 10 per cent after management delivered a flat revenue result while noting challenges in growth.
