DULL IN LONDON.

Auckland Star, Volume LXX, Issue 190, 14 August 1939, Page 4

DULL IN LONDON.

I NEW ZEALAND LOAN. LITTLE INTEREST SHOWN. LONDON, August 12. The markets in August arc running true to form, with business ireduccd to a minimuni under the combined influence of the ; holidays and international uncertainties. ; Although prices are tending to drift, there-; is no sign of real weakness. [ The Ino.lt curious tent lire of the duil markets during tin- past week lias been' the fii mnesw in gilt-edged securities, which withstood botli the Danzig fears and tho pressure 011 sterling. Business, however, remained negligible. Even the New Zealand loan attracted so little interest that there have been fewer than half a dozen markings since dealings opened. The sponsors of the loan are not ready to sell at a discount. The "Financial News'' considers that buyers are not inclined to bite until the Dominion has given clear proof that it is able to surmount, its financial problems. The traditional August holiday quietness reduced business in industrials to a mere trickle. Rubber shares absorbed most interest from speculators. The spot price of rubber is now the highest for two years. There has been some renewal of interest in base metal shares, but gold shares are inactive and levels are inclined to be easy. There has been «ome selling of sterling in the past week in anticipation that the authorities would allow the pound to slide when the autumn pressure reaches its height. The underlying position of sterling has been weakened by the rearmament boom, and the balance of trade already has deteriorated sharply. Dutch guilders rose on a keen demand from banking and other institutions desiring to cover themselves in connection with the Mendelssohn issues. :