MARKETS REVIEWED.

Auckland Star, Volume LII, Issue 283, 28 November 1921, Page 5

MARKETS REVIEWED.

STOCK EXCHANGE FIRM. WOOL MARKET IMPROVING. HEAVY BUTTER ARRIVALS. (By Cable.—Press Association.—Copyright.) (Received 1O.:JO a.m.) LONDON, November 27. Tlie stock markets have been overshadowed by domestic and foreign political considerations, ami arc less hopeful, in view of the possible outcome of the Washington Conference, but despite this and lack of public interest quotations are fairly well maintained. Oilt-edged securities show ii general hardening tendency on easier money conditions, though the upward trend of colonial stocks has bren checked by the small subscription to the South African loan, of which the underwriters expect to receive a considerable proportion. Business in industrial stocks ie meagre, but there have been but few alterations in prices, though armament securities are flat as a result of the \Vashington proposals. The general slackness of business is causing members to agitate for the re-introduction of the pre-war system of fortnightly settlements. They consider the absence of speculative facilities responsible for the present stagnation. There is a distinctly easier tone in the money market. Floating credits were

abundant yesterday, and an issue of Treasury bills was allotted at the unexpectedly low average rate of £3 14/2 per cent. An outstanding feature of the foreign exchange market is the weakness in the franc. Fluctuations in French and Belgian rates haw been of feverish character, reflecting the general uneasiness felt regarding the German reparation payments. There had been considerable speculative selling of francs, and as the general feeling towards the French Exchange has become somewhat pessimistic, even in France itself, there has been little support to counteract selling. It seems probable that the dollar exchange will be influenced for some little time by the Washington conference, and a higher rate than' four cannot at present be expected on purely economic grounds.

The decline in wool values at the London auctions had only slight effect at Bradford, where it was expected, and completely discounted in advance. Now that operations have settled down improved business is being done at Tuesday's level. The tone at Bradford lias improved, though topmakers are not operating extensively. There is good inquiry in practically all qualities of tops. Spinners, however, are following ii waiting policy, pending some further light on the course of raw material values. Good effect has been caused by Bawra's statement of the statistical position of wool, showing that the consumption of merinos exceeds the production, and that if sales continue at the scale of the last three months all visible supplies of merinos will be exhausted by July.

The outlook in tho metal markets generally continues to improve, especially for copper. The demand for electrolytic from the United States and Germany, its principal consumers, has attained" large proportions, causing considerable reduction iv the heavy stocks in the United States. If the present rate of consumption continues they should soon be brought down to a fairly normal level. It is not likely that mine production will be increased nntil the world outlook for ore is settle*! and the present stocks of electrolytic greatly reduced. Tin is meeting with good demand from consumers of South Wales. America and Germany. Stocks in the East are still large, so a l»ig advance in prices is improbable, but a gradual hardening is expected. There is a shortage of lead on the London market, due to the Continent buying largely supplies which had hitherto been coming here. Producers in America and Mexico are holding for higher prices. Spanish shipments to the United Kingdom ore on a. reduced scale. Wheat freights cgntinue on the down grade, present rates being: Westralia 40/(5, Victoria ami South Australia 50/. Those low rates are rendered possible by the fact that a fair number of steamers arp taking coal at Colombo. It is expected that tho arrivals of butter to the end of thr> year will amount to 170.000 boxes Australian and 240,000 Koiv Zealand. In view of this large supply there is litile prospect of tlie maintenance of present prices, but there is an excellent demand for all good butter, and the decline is not expected to be serious, at any rate till the New Year. — ( A. and N.Z. "Cable.)