LONDON'S TRADE.

Auckland Star, Volume LIII, Issue 101, 1 May 1922, Page 5

LONDON'S TRADE.

STOCK EXCHANGE REACTION. WOOL PROSPECTS BRIGHT. CHEESE MARKET QUIET. { (By Cable.-—rr;;s Association—Copjrlshl.j LONDON, April SO. The Stock Exchange lias been under the influence of a variety of ildvovse circumstances during the past week, notably (he lack of progress at Genoa-a nervous feeling arising from the d:?----agreements there—the engineering crisis, the uncertainty regarding the Budget, and the deplorable events in Ireland. All these contributed to a reactionary tendency in the stock market*, but there lieve been no serious declines, and though British gilt-edged securities flenerallv are lower, colonial 'stocks displayed a number of substanI tial rises." The premiums on recent I colonial Usues. however, we:-a not always maintained, and the fact that Sow Zealand scrip is selling at 2/6 discount is regarded in some quarters us an indication that conditions are not yet (|uite : pood enough to justify the Colonies j placing i> ncr eent.B at. par. This temporary halt in ihe upward movement of securities is hardly RurprUing. for the recent appreciation has hem enormoUß. The 'Bankers' Magazines'' ' tables of the Stock Exchange's values ; Hhoiv that during the last four weeks ' 387 representative stocks mnde a total £«in in capital value of nearly ; of which a77.000.rKX1 were in fixed interest stocks. Every one of 34 different classes of securities showed an increase, ranging from S t»r cent in electric lighting and power companies to 19 per cent in tramway and omnibus uudertjikings. The general impression is thnt the appreciation is likely to continue. One well-informed financial authority writes: "Stagnant trade and cheap money seem likely to be a factor operating- favourably for some weeks to come. Conditions seem favourable tor a continuance of financial activity, Kiid probably a further rise in the value of securities."'

The prospect? for the opening of the i London wool scles on Tuesday appear , very favourable. There is a general ex--1 pectation that prices will show a fur- | Th-er advance, probably 5 to 10 per cent !in Merinos, ami 5 per cent in line crosebreds. with medium and low crossbred* firm at. \ntc rates. The markrt for Merinos is expected Jo be (strong for some weeks, as the United State? is expected to operate more freely .n the near future, and good combing Merinos are being consumed faster than they are produced. Firm rates are. likely to continue till the new clin appears, when ♦ here may be some falling , off. Tops continue to harden. Some makers arc co heavily cold forward that they are i not accepting new orders, and generally ere a*kin?: a penny advance over last week for Merino tope. Orders for yarns ere increasing, as spinners arc enjoying a larger turnover and commanding- better prices. There is more activity in all sections of the cloth trade, but the export trnde is much better than the home trade. Some fears are expressed that high priors may cripple trade a I the manufacturers' end. and at present there, is no advance in the price of clotl lonimPTisurate with the rises of wool lops, and yarns. It is pointed out that (he prices of to;i> now average 65 pei cent above pre-war. 70's showing ay ftfivenc-e of 11)5 per cent. J The cheese market i> in a peculiai ■ position, for {hough there is no undu< accumulation of stocks unci prospective arrivals are moderate, trade is almost at a standstill. The rPtail price of best i Xew Zealand has been reduced to lit per lb without stimulating sales. Th< only explanation nfl'ered is that the mi ueunlly cold Treat hir is causins , peopU lo prefer meat to chtesc. With th< return of imrmD! spring temperahm Uin demand should improve. The npnle market has been somewhat affected by two bad cargoes, but al (rood fruit i<l selling well. A feature ii Ihe larsre demand from the Continent especially for Ole.opatras. Xow fhat nc cargoes are poing to Hamburg all Scan dinavian needs must be filled in Eng land, hem , * the (rood market at Hull— I (A. and K.Z. Cable.)