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 weakens on property sector, US inflation data ahead, Comm Bank lifts profits
The local sharemarket took a breath ahead of another important US inflation print on Tuesday night with the S&P/ASX200 (ASX:XJO) falling 0.2 per cent on little news. 9 of the eleven sectors finished lower lead by the property sector, which fell 1.4 per cent amid growing concerns about commercial property valuations, Charter Hall (ASX:CHC) was among the laggards dropping by 4.2 per cent in the session. The financial sector rebounded strongly after a mixed week as each of the major banks reported a diverse range of results. This time the Commonwealth Bank (ASX:CBA) managed to outperform the market, gaining 0.2 per cent, after reporting a 10 per cent increase in profit to $2.6 billion. The result was powered by an extremely competitive quarter of lending, with the business bank up 12 per cent and home lending 5.2 per cent in line wth system growth. The bank continues to flex its muscles with 75 per cent deposit funding, meaning they are less exposed to the increasing cost of capital around the world.
Gold miners sink again, iron ore rallies, Worley set up for a long run, retail sales weaken
There was significant volatility in the materials sector with gold miners sinking heavily on an advancing Australian dollar and weaker gold price, which is not unusual ahead of another inflation print. Shares in Silverlake (ASX:SLR) fell by 6.4 per cent as the company continues its mission to acquire St Barbara’s Gwalia mine. It was the opposite story in iron ore where the price of the key commodity appears to be bottoming, boosting the likes of Mineral Resources (ASX:MIN) which gained 2.9 per cent. Worley Parsons (ASX:WOR) gained 2.9 per cent after management suggested the company was set to a “prolonged upcycle” with the booming number of projects set to support stronger earnings and profit growth amid a switch towards more sustainability focused projects. The business is growing at a level not seen in 25 years, said CEO Chris Ashton. The impact of higher rates continues to be felt across the economy with retail sales falling for the second straight quarter, down 0.6 per cent.
US mixed on debt ceiling, PayPal dives on weaker growth, Nikola takes a hit
All three US benchmarks finished lower on Tuesday, led by the Dow Jones which finished 0.5 per cent lower, as growing concerns regarding the impending reaching of the debt ceiling hit confidence. This comes ahead of another key inflation print that most expect to show prices increased by just 5 per cent for the year. Shares in PayPal (NYSE:PYPL) sank heavily, falling 12 per cent, despite the company reporting a 50 per cent increase in profit with investors’ concerned about the slowing revenue growth rate of 6 to 7 per cent. Palantir Technologies (NYSE:PLTR) gained 23 per cent after the company reported its first quarterly profit of US$17 million on the back of a 20 per cent increase in revenue. It was the opposite story for Nikola (NYSE:NKLA) which fell 13 per cent after the company reported an expanding loss of US$169 million for the quarter with revenue of just $11 million.
