EFFECT OF KOREAN WAR

Press, Volume LXXXVI, Issue 26264, 8 November 1950, Page 9

EFFECT OF KOREAN WAR

COMMODITIES UP AND SHARES DOWN # (N.Z. Press Association—Copyright) LONDON, November 6. Chinese intervention in Korea gave a bad attack of nerves to world markets today. Stock exchanges slumped, while raw materials and free gold boomed. American markets opened with a bad break on Wall Street, but with the maximum permitted daily advances in sugar, cocoa, and rubber, and great strength in wheat and several other commodities. On top of consecutive all-time record prices, every day for the last week, tin in London jumped by another £llo—the biggest rise ever known in one day—to reach £1175 a ton. Rubber also reached a new peak—its highest since 1912. British Government securities and Japanese bonds were the worst sufferers on the London Stock Exchange. Gold shares, and some, though not all, commodity shares, were helped by the strength of their commodities. Brussels, Paris, Milan, and Johannesburg Stock Exchanges also reported widespread and occasionally substantial losses. In New York, the Stock Exchange was flooded with selling orders and prices declined by one to more than four dollars a share as traders tossed big blocks of stock on the market.