Prices Slump On London, New York

Press, Volume CV, Issue 31062, 18 May 1966, Page 21

Prices Slump On London, New York

Industrial unrest in Britain’s shipping industry and the chances of higher taxes in the United States helped unsettle stock markets in London and New York on Monday.

The Wall street stock market closed with another substantial loss, the N.Z.P.A. reported from New York.

market slumped because of the national shipping strike, but closed above the day’s lowest levels. Selective demand helped enliven various issues, including engineering stocks and gas appliance issues, which were buoyant on North Sea gas and oil findings. London “hedge” buying, bolstered by selective European and United States investments, lifted gold mining shares. Coppers were also firm.

The list made a feeble attempt to rally in the morning but received no following. As early prices softened, selling presure built up and prices fell once again. There was a partial recovery late in the day but not enough to save the market from another steep decline. The failure of a rally to develop any following, in spite of last week’s very big loss was a further discouragement to traders and investors, brokers said. Behind the fall was a debate about the possibility of a tax increase, uncertainty on the general prospects of the economy and the situation in Vietnam. Prices on the London stock

British Government bonds slipped along with sterling. United States dollar stocks were irregular.