RESIGNATION OF MINISTERS

Press, Volume XCVII, Issue 28480, 9 January 1958, Page 14

RESIGNATION OF MINISTERS

Impact On Prices And Sterling

(N.Z. Press Association—Copyright)

LONDON, January 7. The London Stock Exchange and foreign exchange markets were taken aback this morning by last night’s sensational resignation of Treasury Ministers, but the initial impact on prices and sterling wag quite small. Reporting this, Reuter’s financial editor said Continental operators started as small sellers of pounds, but almost immediately turned buyers. Shortly after the opening pounds were in demand at 2 dollars and 8K cents. This was well above the par value of 2 dollars and 80 cents and only a fraction below yesterday’s rate of 2 dollars and 811 cents, which was sterling’s best rate since 1954. Later in the morning, London Stock Exchange turned firmer. Oils, and some other leading shares, rose above yesterday’s levels. No section of the stock exchange showed any sharp declines. Sterling eased slightly, and settled down at a little more than 2 dollars and 81 cents.

In spite of a feeling of uncertainty in the sterling market, and the importance attached to the principle o* controlling Government expenditure, the market was described as quiet. Sterling weakened only slightly on European stock exchanges todav, Reuter reports from:— Frankfurt.—Spot rates remained almost unchanged. Maximum: 11.77 J marks —thle same as yesterday. Minimum: 11.76 J compared with 11.76?. Amsterdam.— A slieht fall from 10.60 guilders to 10.591. Zurich.—Free market rate 5 centimes down on yesterday at 12.30 to 12.60—but the commercial transactions rate was actually stronger by 1 centime at 12.24 to 12.29.

Brussels.—Reopened at 139 85 francs comnared with yesterday’s close of 139.92.

Paris.—Official market price 980 *rancs at opening compared with 980.75 at yesterday’s close. Today’s closing price: 980.05 francs.