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.
Market (ASX:XAO) sinks despite GDP data beat, oil rallies on supply cuts
The local share market weakened again on Wednesday, with the All Ordinaries down 0.7 and the S&P/ASX 200 (ASX:XJO) falling 0.8 per cert as seven sectors fell by more than 1 per cent. The rare highlight was the energy sector, which gained 1 per cent on the back of the oil price surging above US$90 per barrel and boosting the likes of Woodside (ASX:WDS), up 1.4 per cent, and Santos (ASX:STO), which finished 1 per cent higher. The weakness came despite a stronger than expected quarterly GDP result which saw the economy grow at 0.4 per cent in June. The converts to a 2.1 per cent annual growth rate, well ahead of the 1.8 per cent expected. That said, the currency continues to tank on Chinese growth concerns, with the AUD buying just 63 US cents. Exports were a key contributor to the growth result.
 Orora sinks after capital raising, coal royalties to hit NSW, Macquarie profit slowed Shares in packaging manufacturer Orora (ASX:ORA) fell 18 per cent after restarting trading following its $1.3 billion capital raising. While the acquisition is expected to accretive the market sold off on the pricing of the new shares on issue. The NSW government reassured investors that the $2.7 billion royalty on coal production will not hit jobs or investment in the sector, but highlights a growing trend towards extracting higher taxes from the most profitable sectors. Macquarie Group (ASX:MQG) retreated 3.8 per cent after the company flagged a slowing in the realisation of asset sales within its green banking business, but still remains on track for the forecast results. Magellan (ASX:MFG) flagged another $300 million in net outflows during August, with management still unable to stem the bleeding despite improving underlying fund performance.  US markets stall on oil price, bond yields, AMC tanks All three US benchmarks finished weaker on Wednesday, as higher oil prices signalled a growing inflationary threat. News that key OPEC+ partners were cutting production sent the oil price higher, which many believe will force another rate hike by central banks. That said, this would do little to crimp demand any further. The Dow Jones finished 0.6 per cent lower, the S&P500 0.7 and the Nasdaq underperformed, falling 1.1 per cent. Technology sank hardest as higher bond yields impacted on valuations. The US trade deficit widened in July to US$65 billion, amid growing data that suggests a gradual weakening of the economy. Both NVIDIA (NYSE:NVDA) and Apple (NYSE:AAPL) fell by more than 3 per cent as they are sensitive to bond yield movements. Zscaler (NYSE:ZS) was one of just a few companies to report, flagging an extension in the time required to close deals and noting lower earnings expectations.
