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 drops 0.2%; NZ raises rates again
ASX falls on tech, RBNZ hikes rates, Harvey Norman profit slumps
Weak global sentiment continues to pressure the S&P/ASX200 (ASX: XJO) with the market falling another 11 points or 0.2 per cent on Monday.
This time the selling was widespread, with just utilities and energy gaining 1 and 1.2 per cent, whilst the technology and industrial shares bore the brunt of the selloff.
Technology One (ASX: TNE) was the biggest detractor falling 8.6 per cent after yesterday’s result, which saw profit growth of 14 per cent, was met with concerns about unsustainable valuations.
Pinnacle (ASX: PNI) shares were also 5.6 per cent lower after exiting their trading halt following a discounted capital raising to fund the purchase of private equity firm Five V Capital.
The energy sector was boosted by Santos (ASX: STO) and Beach (ASX: BPT) which gained over 2 per cent.
In a much-anticipated decision, the Reserve Bank of New Zealand hiked rates for the second time from 0.5 to 0.75 per cent in an effort to slow down the incredible housing price increases, which exceeded 30 per cent over the last 12 months.
ASX slapped with ASIC conditions, go Harvey, Webjet at “tail end” of pandemic
Shares in the Australian Stock Exchange (ASX: ASX) fell 1.4 per cent after ASIC released a scathing report into the shutdowns that occurred in 2020.
The result will be a greater level of oversight and management responsibility, with professional services firm EY to be involved in the entire process ahead of the launch of the new CHESS system.
Travel firm Webjet (ASX: WEB) gained 1.4 per cent after reporting a $3.5 million profit per month in the financial year to date.
Whilst the quantum isn’t great, the fact that they are profitable is an important step as the near what management has described as the ‘tail end’ of the pandemic.
Shares in Harvey Norman (ASX: HVN) fell 1.7 per cent after reporting a 36 per cent fall in profit compared to 2020 levels, due to significantly stronger comparable results.
Total sales revenue contracted by close to 9 per cent, with signs that the work from home boom may mean a slowdown in white good and furniture sales.
Iron ore shares also continued their strong recent run as the Chinese price reached US$100 per tonne once again.
Losses tempered ahead of Thanksgiving holiday, jobless claims down, Gap slumps
Global markets staged an intrasession comeback on Wednesday ahead of the Thanksgiving Day holiday in the US.
Attention has once again turned to economic data and the Federal Reserve with plunge in first time jobless claims to 199,000, a fall of 71,000 people, hitting the lowest level since 1969.
The result saw the tech sector outperform, the Nasdaq ultimately finishing up 0.4 per cent, the S&P500 0.2 per cent higher and the Dow Jones flat.
Alibaba (NYSE: BABA) appears to have ended its worst run in a decade, falling 20 per cent in five sessions after an underwhelming earnings result, which shows that not every business is expensive today.
Clothing retailer GAP (NYSE: GPS) offered an insight into what can go wrong in supply chains with management suggesting some US$550 to $650 million in sales would be lost due to supply chain issues and another US$450 million in air freight expenses.
The company is attempting to bring forward delivery of product from their struggling Vietnamese production facilities whilst being hit by West Coast port closures.
Shares fell 24 per cent in a stark contrast to Target (NYSE: TGT) which decided to charter it’s on freight planes to guarantee supply rather than rely on traditional sources.
