CAUSES OF FALL IN LONDON

Press, Volume LXXXIII, Issue 25250, 31 July 1947, Page 7

CAUSES OF FALL IN LONDON

“ ECONOMIC AND. ALSO

POLITICAL ”

(Rec. 11 p.m.) LONDON, July 30. “The last few days have been the worst on the Stock Exchange since February, when the fuel cut hit the Stock Exchange market,” says Reuters financial editor. ‘‘This time the reason is the growing concern about the economic position, and also,about the political outlook since talk is being revived of the possibility of a General Election.

‘‘lt is realised that the American dollars are running out fast, and that Britain may have to wait some time and agree to certain conditions before the Marshall plan can operate. “Many millions of pounds have been shed from the market value of giltedgeds and popular home ‘ industrials. Many long and medium-dated British funds are standing at a 3 per cent, basis. It is impossible to estimate accurately the loss of market valuation of the whole industrial list, but it has been computed that gilt-edgeds have declined £53,000,000 this month. ’ “The effect on other sections of the Exchange generally has been to restrict trading, with the exception of bil speculators, many of whom have decided to consolidate their handsome profits. This has resulted in sharp declines in leading oils. Perhaps the most satisfactory section has been mining shares, where prices are not unduly disturbed although business has contracted.

“Generally the stock market outlook is not too favourable, and there is little to tempt new buyers at present.”