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 gains on growing unemployment, property jumps, KMD revenue soars.
The local market (ASX:XJO) managed a strong gain on Thursday, finishing 0.5 per cent higher, on news that the unemployment rate had jumped to 3.7 per cent from 3.5 per cent. This is the first evidence of a slowing economy under the weight of surging interest rates and saw the technology sector boosted by 2.9 per cent on the back of a strong rally in Block (ASX:SQ2). Shares in Beach Petroleum (ASX:BPT) were the biggest laggards, falling 4.3 per cent on the back of an update that introduced uncertainty into the delivery of its Waitsia project. Shares in Kathmandu owner KMD Brands (ASX:KMD) gained 1 per cent after the company reported sales growth of more than 15 per cent in the third quarter, with Rip Curl a key contributor, up 7.9 per cent. The news was even better at Australian Agricultural Co (ASX:AAC) which posted a 35 per cent increase in profit to $67.4 million for the year, on the back of a 14 per cent increase in revenue that benefitted from ever increasing meat prices.
Nufarm up double digits on surprise result, Zero gains despite losses,
Shares in fertiliser producer Nufarm (ASX:NUF) gained more than 14 per cent after the company reported 1 7 per cent increase in profit, buoyed by a 1.2 per cent increase in its gross profit margin, as higher prices combining with falling input costs. The result was a 25 per cent increase in the dividend to 5 per cents per share which was welcomed by investors. Gaming machine maker Aristocrat Leisure (ASX:ALL) fell more than 3 per cent, despite the company reporting a 14 per cent increase in profit to $659 million. The result was driven by a strong performance in the American business and a boost to the Pixel United design group. Revenue was 12 per cent higher and the dividend was boosted by a further 15 per cent after management confirmed guidance for the full year. Accounting platform Xero (ASX:XRO) gained close to 9 per cent after the company reported 28 per cent growth in revenue but a ballooning loss to NZD113 million from just $9.1 million in the year prior.
Nasdaq gains, Walmart beats forecasts, debt ceiling negotiations in focus
All three US benchmarks climbed higher on Thursday, led by the Nasdaq, which added 1.5 per cent as the likelihood of another rate hike in June fell to less than one third. The S&P500 gained 0.9 and the Dow Jones just 0.1 per cent despite a strong result from Walmart (NYSE:WMT) with investors remaining keenly focused on the threat of the US debt ceiling being reached. While it appears likely negotiations will mean a solution is found, the will they or wont they continues to drive market sentiment on a daily basis. Sales of previously owned homes fell by another 3.4 per cent in April, as rate hikes continue to bite, while prices fell another 1.7 per cent. Shares in Walmart finished 1.3 per cent higher after the company reported a 20 per cent fall in profit despite revenue growing at 7.6 per cent in the quarter and benefitting from inflation. Analysts were concerned about the waning traffic numbers and the 7 per cent increase in costs including labour.
