TOUCHED BOTTOM.

Auckland Star, Volume LXVIII, Issue 259, 1 November 1937, Page 4

TOUCHED BOTTOM.

LQNDON STOCK MARKETS. REVIVAL NOW EXPECTED. CITY FINANCIERS' VIEWS. (Received 11 a.m.) LONDON. October, 31. There is a widespread feeling that markets have touched bottom. Responsible brokers are advising their clients to buy because they believe the Stock Exchange is about to experience a meat revival. The leadership «,t' the gilt-edged section has certainly been strong. There lias been persistent buying of (iovcrnineiit stocks in the past, lew days. The technical position nt the markets is excellent. The "Investors Chronicle," however, while agreeing that a rally is long over-: due. considers there is no likelihood of a major revival tallying prices to levels ruling at the beginning of the year. Private building in Britain has passed its peak, and there lias been a distinct tailing off in the last quarter in new shipbuilding. The demand for heavy electrical goods is lower than at the beginning of the year. The "Economist's" survey of the state of trade states that the volume of business activity in Britain remains at record level despite the falling of securities. Commodity prices arc sufficient to enable many branches of activity to maintain their current volume of output many months ahead* Iron, steel and metal using industries are still favourably placed. Deliveries of ma'n-y products, especially machinery, rejhiain below requirements. Cotton, wool and textile trades have experienced a definite reduction in new business attributable to the fall in prices of raw materials. Consumption trades are the most active, which is not surprising in view of the steadily growing national income. The recovery in Wall Street has, unfortunately, not extended to metals. United States copper producers have lowered the domestic price, but sales remain poor. The lead position is also discouraging.