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) down on RBA, GDP outlook, Origin, Qantas struggle
The local share market closed broadly flat on Tuesday, with both the S&P/ASX200 (ASX:XJO) and All Ordinaries falling 5 and 9 points respectively. The primary culprit was a weakening utilities sector which fell 1.2 per cent behind a 2.9 per cent selloff in Origin Energy (ASX:ORG). The weakness came despite news that the NSW Government was in talks to extend the life of the Eraring coal-fired power station which is currently expected to close in 2025 and add further uncertainty to the energy market. Shares in Qantas (ASX:QAN) all but ceases their recent selloff after CEO Alan Joyce brought forward his planned retirement in light of a number of public relations and regulatory disasters. Across the market the property sector was also under pressure, falling 0.5 per cent after the RBA kept rates on hold but hinted that more rises may lie ahead.
Torque surges 140 per cent, Orora capital raising increased, Chalice sinks on downgrade
Smaller cap gold miner Torque Metals (ASX:TOR) was the standout on another wise quite day, with shares leading 170 per cent after the explorer flagged expanded gold and lithium deposits. It was the opposite story for gold miner Chalice (ASX:CHN) with losses mounting and the share price dropping another 13 per cent on the back of a downgrade by a major stockbroking firm. Packaging provider Orora (ASX:ORA) remained in a trading halt after confirming its intention to fund the purchase of French bottle marker Saverglass via a capital raising of $1.345 billion. The $2.2 billion price will be paid to private equity giant The Carlyle Group. Finally, the regulator has launched legal action against Westpac (ASX:WBC) on concerns that they may not have acted in the appropriate period after receiving hardship requests from borrowers.
Downbeat economic data hits market, Airbnb, Blackstone up on S&P500 inclusion
Weakening economic data and further oil production cuts were behind a negative day for global markets. News that Saudi Arabia was joining Russia in cutting oil production is likely impact growth, as consumer face higher costs for fuel and diesel. The result was a 0.6 per cent fall in the Dow Jones, 0.4 on the S&P500 and 0.1 from the Nasdaq. This was combined with US factory orders falling for the first time in four months, suggesting business is slowing investment decisions. While the Chinese services sector expanded in August but at the slowest pace in eight months as the post pandemic recovery slows. In company specific news, both Blackstone (NYSE:BX) and Airbnb (NYSE:ABNB) gained more than 3.5 per cent after receiving confirmation they would be joining the S&P500 index and thus form part of hundreds of ETFs.
