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.
Indices stay anchored on Aussie market
The Australian sharemarket eked out a tiny gain in terms of the benchmark S&P/ASX 200 Index on Tuesday, with the gauge lifting 1.9 points to 7,311.1, while the broader All Ordinaries index went the other way, albeit by an even smaller quantum, down 0.2 points at 7,519.7.
National Australia Bank’s monthly survey showed that Australian business confidence continues to rise – despite business conditions dipping slightly – challenging expectations that the economy would continue to cool.
In other data, China’s exports fell for a third consecutive month in July, hurting hopes for a strong recovery in the world’s number two economy. That fed into losses for mining heavyweights Rio Tinto and BHP: Rio lost 48 cents, or 0.4 per cent, to $113.46, while BHP was down 25 cents, or 0.6 per cent, to $45.32. But Fortescue Metals bucked the trend, up 9 cents, or 0.4 per cent, to $21.14.
Commonwealth Bank gained 36 cents, or 0.4 per cent to $102.21 ahead of its profit report on Wednesday. National Australia Bank advanced 7 cents, or 0.3 per cent, to $28.03; while ANZ lost 6 cents to $25.24; and Westpac shed 12 cents, or 0.6 per cent, to $21.71. Also reporting today is insurer Suncorp, which eased 2 cents to $13.75; but QBE gained 23 cents, or 1.5 per cent, to $15.88.
This morning, CBA has reported a $10.16 billion cash net profit for the 2023 financial year, 6 per cent higher than in the previous financial year. Operating income increased by 13 per cent to $27.2 billion, which CBA said was driven by volume growth in home and business lending and an increase in net interest margin (NIM). 
The bank’s NIM rose 17 basis points to 2.07 per cent, due the rising interest rate environment, while being partially offset by the impact of increased competition, particularly in home lending.
James Hardie, Myer, lead in different directions
Building products heavyweight James Hardie was a star performer, rising $5.86, or 14.2 per cent, to $46.53, after posting an increase in earnings and margins. James Hardie shares are now up more than 75 per cent since January.
Department store chain Myer sank 10 cents, or 14.1 per cent, to 61 cents after reporting weaker sales growth in the second half. In a market update ahead of its full-year report, Myer upgraded its profit expectations to between $69 million and $73 million for the 2023 financial year. Online retailer Redbubble also had a bad day, falling 10 cents, or 14.3 per cent, to 60 cents.
Lithium miner Pilbara Minerals added a further 14 cents, or 1.9 per cent, to $5.28, after analysts at JPMorgan upgraded the stock to “overweight” on the back of the miner upgrading its resource estimate at its Pilgangoora project in Western Australia by 36 per cent. Fellow lithium producer Allkem fell 36 cents, or 2.5 per cent, to $14.34.
In energy, Woodside Energy added 23 cents, or 0.6 per cent, to $38.40, on the back of news that it will sell 10 per cent of its flagship Scarborough gas project to LNG Japan for $US500 million ($763 million).
Coal producer Coronado Global Resources tumbled 19 cents, or 11.6 per cent, to $1.455 after the coal producer reported a 24 per cent dip in revenue. Fellow producer Terracom slid 1.5 cents, or 3.7 per cent, to 40 cents.
Moody’s mauls banking moguls
In the US, stocks retreated Tuesday on the back of a downgrade of the banking sector by credit rating agency Moody’s. The ratings agency cut the ratings of ten US banks and placed some big names – including Bank of New York Mellon, U.S. Bancorp, State Street, Trust Financial and Northern Trust – on credit watch.
The 30-stock Dow Jones Industrial Average slipped 158.64 points, or 0.5 per cent, to close at 35,314.49, while the broader S&P 500 index gave up 19.06 points, or 0.4 per cent, to 4,499.38, and the tech-heavy Nasdaq Composite Index lost 110.07 points, or 0.8 per cent, to 13,884.32.
In the bond market, the US 10-year Treasury yield slid 5.8 basis points, to 4.033 per cent, while the 2-year yield eased 1.3 basis points to 4.758 per cent.
Gold wound back US$11.34, or 0.6 per cent, to US$1,925.46 an ounce, while the global benchmark Brent crude oil grade lifted 83 cents, or 1 per cent, to US$86.17 a barrel and US West Texas Intermediate crude retreated 22 cents, or 0.3 per cent, to US$82.70 a barrel.
The Australian dollar is buying 65.39 US cents this morning, up from 65.22 US cents at the ASX close on Tuesday.
