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 flat, OPEC+ cuts boost energy, utilities, institutions leave Magellan
The local market finished just 2 points higher today, all but a rounding error, as gains in the energy and utilities sectors, up 2.2 and 1.1 per cent, offset losses in the consumer and property sectors, which were down 0.8 and 0.7 per cent.
The highlights remain from the traditional fossil fuel sectors as Woodside (ASX:WDS) lifted 2.6 per cent while New Hope Coal (ASX:NHC) added 3.3 per cent for the third day of record prices.
Shares in Appen (ASX:APX) fell by more than 11 per cent after the company released an underwhelming quarterly trading update.
The artificial intelligence group indicated they had not been any improvement in trading, despite previously suggesting the second half would be stronger, with revenue now expected to be between US$375 and $395 million, a significant cut to prior expectations.
Shares in Star Entertainment (ASX:SGR) finished flat despite the review of the casino owners Queensland operations finding they were unfit to retain their license.
Magellan sinks, trade surplus falls as China slumps
Shares in Magellan suffered another unexpected fall, with shares finishing 8 per cent lower after reporting another $3.2 billion in redemptions during September.
Combined with falling sharemarkets assets under management have fallen to $50 billion, though only $400 million on the latest quarter was driven by retail investors.
Commentators have suggested the UK bond market volatility may have been a reason behind the jump in redemptions.
Australia’s trade surplus fell to $8.32 billion in August, down around 10 per cent, with a jump in imports from China and around the world the biggest driver of the turnaround. This offset slower growth in coal exports.
Lithium remains popular, with Lake Resources (ASX:LKE) gained 2 per cent after announcing an agreement with WMC Energy to purchase some 25,00m mpta of battery grade lithium for the next 10 years.
Market consolidates on Fed commentary, Twitter eases, job openings fall
US markets have taken a pause once again, with all three benchmarks finishing lower on Thursday led by the Dow Jones, which was down 1.2 per cent.
This despite a continued rally in the oil and gas sector following OPEC+’s supply decision. The S&P500 fell 1 and the Nasdaq 0.7 per cent after two members of the Federal Reserve spoke out suggesting there was still some way to go before rate hikes would slow.
They suggested there are no signs of inflation falling, but history has shown there is always a time lag, particularly relevant given signs of a slowing economy continue to grow.
This week saw unemployment benefits increase to a five-week high and job openings fall to a 13 month low.
Shares in Twitter (NYSE:TWTR) fell more than 2 per cent after some of Elon Musk’s funding partners reportedly pulled out of the deal.
