MARKETS “HAMMERED

Dominion, Volume 30, Issue 174, 20 April 1937, Page 9

MARKETS “HAMMERED

Grain Experiences Worst Day for Years London, April 18. Terrific “hammering” of the markets which endured for more than a week has culminated in a rout of commodities, among which rubber alone is holding its ground. The world’s grain markets have experienced their worst day for years and were subject to an alarming flood of selling on Friday. Copper fell the same day by £5/5/a ton, the severest break in prices in the memory of the members of the metal exchange. Other base metals are also weak. Cotton broke sharply, owing to rumours—probably unfounded—that the English. French, and American Governments had reached an agreement to control the prices of commodities. The trend of business generally, however, has been but little affected. Industrial activity continues, with profits rising. The next, few weeks should see a slow but healthy recovery in prices. A moderate improvement in the situation of the rubber market seems possible. The stock markets, except for gold .shares, have not ’endured the hammering that those for commodities have received. Commodity shares, however, have held their ground, as they had never followed the rise in the prices for the raw materials limits. Outlook Seems Bright. There has been some buying of loading industrial shares, also of shipping shares, which have developed what may be called a minor boomlot. The Australasian United Steam Navigation Co.’s shares, which were overlooked in the early stages of the advance, jumped £7 on Friday in a narrow market. The outlook seems bright, especially as the “Economist’s” analysis of industrial profits shows no evidence of a check to earnings. Fortunes made by wheat speculators in Liverpool have vanished in a sudden slump, says the “Sunday Dispatch” in recording a decrease of a shilling a cental on the Liverpool Corn Exchange within 24 hours. The “People” says that secrets are beginning ro leak out showing that the hoisting of prices in the past six months is one of the biggest ramps that has ever occurred. Prices were forced up on rumours of a coming wheat, famine, and now the crop reports show that the American and Australian harvests are likely to be a million bushels better than last year.