BRITISH TRADE REVIEW

Auckland Star, Volume LXVII, Issue 206, 31 August 1936, Page 4

BRITISH TRADE REVIEW

STOCK MARKET FIRM. < MORE OPTIMISM SHOWN. LONDON, August 29. Although the volume of business on the stock market is slight, quotations remain remarkably firm. Home industrial news has been encouraging and the City is inclined to regard the European situation with more optimism in view of the adherence by Italy and C4ermany to the arms embargo plan. Gilt-edged stocks are especially firm, Australians attracting buyers. Industrials are steady. Commodities have been uninteresting with the exception of a burst of speculative activity in cocoa, which is regaining its former popularity. The price now is more than £31 a ton, the highest for years. Butter is quiet. Statistically, the position does not warrant an appreciable break in prices, but buyers are getting very cautious. Rubber is slightly dearer, owing to Russian demand. Soviet imports in the past eight weeks have been double compared with last year. Metals also are in steady demand at rising prices. POSITION OF WOOL. LONDON, August 29. The general opinion in the trade is that at the opening of the Australian wool season the basis jvill be closely in line with the current spot values in Britain. Urgent and substantial United Kingdom requirements should be sufficient to ensure healthy demand on the Australian market for some weeks, after which it is hoped in London difficulties with Japan may be resolved. Prominent Bradford merchants believe Japan cannot be so foolish as to scrap the standard lines of wool goods on which she lias built up a world-wide export trade which long abstention from the Australian market would oblige her to do. Whatever happens in respect to Japan, Britain is hungry for wool. The large supplies imported last year were liquidated with surprising freedom and at present something of a squeeze is felt and there is every prospect that United Kingdom buyers will rush to get wool as quickly as possible. Sjinpathy is growing for Australia in the dispute with Japan. \j