BRITISH TRADE REVIEW.

Auckland Star, Volume LVIII, Issue 107, 9 May 1927, Page 4

BRITISH TRADE REVIEW.

FINANCE MORE BUOYANT.

RESULT OF LOWERED BANK RATE

ANOTHER REDUCTION EXPECTED.

LONDON, May 7.

The reduction of the bank rate a fortnight ago has had a salutary effect on the Stock Exchange, and most departments are active and firm.

Investment stocks especially have felt the benefit of cheaper money, and advanced all round, notwithstanding the flood of new capital issues amounting to over £20,000,000 in ten days, most of which has been oversubscribed. Colonials have participated in the general demand, and new 6crips show marked firmness, Commonwealth fives having advanced to three-eighths premium, and New Zealand to five-sixteenths.

There is now a pretty general belief that the bank rate will be further reduced to four per cent in the near future. Many people expected a reduction this week, but were disappointed. Discount rates, however, have now got so low that the present 4Vs per cent rate is ineffective, so it is not surprising that the money market confidently anticipated an early reduction. More New South Wales Loans. We are still without information regarding the New South Wales conversion loan, but inasmuch as £6,000,000 is repayable on June 1, and £5,000,000 on July 1. Flotation cannot be delayed much longer.

THE WOOL MARKET

A CHEERFUL TONE,

The wool sales are proceeding satisfactorily. Prices seem established at a basis of par to five per cent decline, compared with last sales, and most people in the trade expect values to remain about this level.

According to a well-informed Bradford correspondent, the outstanding fact of the position is that the sales made no detrimental impression upon the Bradford market. London rates for raw material are still relatively dearer than late quotations for tops. As there is no wool available at prices which justify a decline in quotations for tops, these are firmly maintained. Since auctions opened there has been an improvement in bidding. A strong impression exists that the Bale will close at the best point of the series. It is not improbable that the auctions will provide the incentive required to bring out new business in tops and yarns, which _ the volume of current inquiry indicates is in the background.

THE APPLE TRADE

A KEEN DEMAND.

The apples trade continues good, finest Australian and New Zealand realising high prices, but unfortunately a considerable proportion of fruit is not altogether satisfactory. Many Tasmanians are only moderate in quality, being somewhat over-ripe. Bitterpit is much in evidence in West Australian, as well as Tasmanian, especially in Ribston and Cox's. There is a good demand for best apples from the Continent, and exceptional prices have been m*de at the Hamburg sales. Importers consider the prospects satisfactory for trade in good apples till mid-July, as the cold dry weather here and on the Continent has been retarding the soft fruits, which usually come in competition with apples.