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.
Sharemarket closes higher for first time this week, Ampol jumps on volumes, iron weakens
Local markets were buoyed by an improving global economic backdrop and the flow through of some positive corporate results. The energy and financial sectors drove the market, adding 1.7 and 1.5 per cent respectively, with the former benefitting from an earnings upgrade from Ampol (ASX:ALD). Management now expect earnings of $800 million in the first half, driven by a 24 per cent increase in sales volumes along with an improving refining margin, which is boosting profitability; shares finished more than 4 per cent higher. It was the opposite story for oil producer Woodside (ASX:WDS) as the company reported a 4 percent drop in sales, driven by lower production and a lower oil price in the second half. The result was a 29 per cent drop in revenue to US$3.1 billion, with shares still managing a 1.7 per cent gain.
Australian Ethical reports inflows, Rio’s iron ore masterclass, Norther Star down on production
Iron ore miner Rio Tinto (ASX:RIO) fell 0.8 per cent despite the company reporting its most productive first half in five years, putting the company on track to deliver at the top of its guidance range. This came as a train derailment continued to slow exports, potentially impacting on cash flow collection. Fund manager Australian Ethical (ASX:AEF) reported a return to inflows, adding $172 million for the quarter, with strong market performance sending assets under management over $9.2 billion. While gold miner Northern Star (ASX:NST) fell by close to 6 per cent after management reduced guidance on gold production, and suggested production costs were set to increase.
Dow Jones hit’s 15 month high, Goldman sachs misses, telecoms benefit on regulation
The Dow Jones has now delivered its longest winning streak in four years, reaching a 15-month high on the back of another 0.3 per cent gain overnight. The energy sector continues to support the performance of the benchmark, while another big day of earnings season also offered a tailwind. The S&P500 gained 0.2 per cent while the Nasdaq was broadly flat with the only real economic data showing a further 8 per cent fall in new home construction. Shares in Goldman Sachs (NYSE:GS) gained 1 per cent despite the company missing profit expectations, as profit fell 30 per cent and revenue 10 per cent, in what was a ‘noisy’ quarter that saw mixed performances from multiple business lines. Both AT&T (NYSE:T) and Verizon (NYSE:VZ) gained strongly, adding 8 and 5 per cent, after a positive regulatory development is set to reduce a potentially significant capital expense for their physical networks.
