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 doesn’t like the plural
The Australian sharemarket finished lower on Tuesday as investors digested the prospect of further tightening by the Reserve Bank, after the minutes of the central bank’s latest meeting mentioned the possibility of rate “increases,” with any potential move depending on how the economy and inflation pan out.
Markets also assessed weaker-than-expected economic data from China, which added to concerns that the recovery in the world’s number two economy is losing steam.
The Middle Kingdom’s industrial production rose 5.6 per cent in April from a year earlier, short of the 10.9 per cent estimate by economists, while retail sales climbed 18.4 per cent, also slower than expected. China’s urban jobless dropped to 5.2 per cent, while the youth unemployment rate hit a record 20.4 per cent.
The benchmark S&P/ASX 200 index retreated 32.4 points, or 0.5 per cent, lower at 7234.7, while the broader All Ordinaries index dropped 36.4 points, also 0.5 per cent, to 7,424.1.
The best-performing stock on the ASX was family-tracking app Life360, which jumped 11.7 per cent to $6.47 after reporting that it achieved adjusted profitability a quarter earlier than expected. Life360 also said its first-quarter revenue rose 34 per cent to $US68.1 million, from a year ago.
Building products company James Hardie jumped $2.81, or 8.3 per cent, to $36.80, after posting a 12 per cent rise in net profit, to US$512 million ($763 million). James Hardie had previously announced three profit downgrades, in February, August and November.
Mixed bag among miners
In big mining, BHP added 23 cents, or 0.5 per cent, to $44.08; Rio Tinto was down 19 cents, or 0.2 per cent, to $108.77; and Fortescue Metals slipped 8 cents, or 0.4 per cent, to $20.30.
In the lithium sphere, producer Allkem eased 6 cents, or 0.4 per cent, to $14.79; and fellow producer Pilbara Minerals rose 6 cents, or 1.3 per cent, to $4.79. IGO, which mines nickel as well as lithium, lifted 18 cents, or 1.2 per cent, to $14.85; and Mineral Resources, which produces lithium and iron ore, dropped 36 cents, or 0.5 per cent, to $73.39. Lithium project developer Liontown Resources gave up 10 cents, or 3.4 per cent, to $2.83; and US-based Piedmont Lithium eased 2 cents, or 2.3 per cent, to 84.5 cents.
In coal, Whitehaven Coal retreated 5 cents, or 0.7 per cent, to $6.84; New Hope Corporation eased 4 cents, or 0.8 per cent, to $5.09; Stanmore Resources shed 3 cents, or 1 per cent, to $2.98; but Yancoal Australia gained 3 cents, or 0.6 per cent, to $5.40, and Coronado Global Resources accrued 2 cents, or 1.3 per cent, to $1.52.
In energy, Woodside Energy weakened 4 cents, to $33.88; Santos gained one cent, to $7.18; Beach Energy added one cent, to $1.405; and Brazilian-based producer lifted 3 cents, or 1.5 per cent, to $2.06.
Among the big banks, Commonwealth Bank slid 91 cents, or 0.9 per cent, to $97.59; and ANZ gained a solitary cent, to $23.54; but National Australia Bank was unchanged, at $26.46; and Westpac was also flat, at $21.13.
Down day on US markets
Stocks dipped Tuesday as investors assessed a downbeat forecast from big retailer Home Depot. Wall Street is also mulling over an upcoming meeting between congressional leaders and President Joe Biden on the US debt ceiling.
The 30-stock Dow Jones Industrial Average closed below its 50-day average for the first time since March 30. The Dow dropped 336.46 points, or 1 per cent, to 33,012.14. The broader S&P 500 index lost 26.38 points, or 0.6 per cent, to 4,109.9, while the tech-heavy Nasdaq Composite Index gave up 22.16 points, or 0.2 per cent, to12,343.05.
In the bond market, the 10-year Treasury yield moved slightly higher, up 3 basis points at 3.543 per cent, while the 2-year yield, considered to be more sensitive to interest-rate policy, increased more than 7 basis points, to 4.078 per cent.
Gold slid US$24.86, or 1.2 per cent, to retreat beneath US$2,000 an ounce, ending at US$1,989.53 an ounce. The global benchmark Brent crude oil grade eased 32 cents, or 0.4 per cent, to US$74.91 a barrel, while US West Texas Intermediate gave up 23 cents, or 0.3 per cent, to US$70.63.
The Australian dollar is buying 66.54 US cents this morning, down from 66.68 cents at the local close on Tuesday.
