EXCITED MARKETS

Evening Post, Volume CXXVI, Issue 81, 3 October 1938, Page 12

EXCITED MARKETS

SENSE OF RELIEF

REACTION EXPECTED

CITY OF LONDON OPINION

(By Telegraph—Press Assn.—Copyright.) (Received October 3, 9 a.m.) LONDON, October 2. The announcement of the signing of the Munich Agreement was the signal for, what might be described as "Mafficking" on every exchange or bourse in Europe. The London Stock Exchange showed itself better able to cope with the anxiety than with the relief, for whereas the retreat early in the week was conducted with astonishing calm- : ness and the usual good order, the exuberance of all in, the City at the relief has been stronger than their sense of balance. THE FIREWORKS OVER? These pyrotechnics, no doubt, will be followed by some reaction next week, no matter what influences may begin to reassert themselves. There are already two schools of thought in the City, one holding that peace in Europe will continue to depend on a precariously-poised balance. This school expects a series of further crises and declines'in the investment markets, and it places but the slightest faith in Herr Hitler's pledges. The other school, while equally sceptical, considers that the events of the past week have opened the way to a general European settlement, which no European State, not even Germany, would lightly disturb. THE CAUTIOUS VIEW. . Those prominent in city finance and commerce holding this view expect a period of peaceful readjustment within the .next year or two, a period which, while it will not be without some drastic changes in various spheres of influence and some minor redrawings of the frontiers, will yet pave the way to a long period of peace and prosperity. There is good reason to believe that this view is a more truthful reading of the situation. • A spectacular recovery, however, cannot be looked for. On the contrary, those leaders who " are engaged in industry appear for the most part to be fully convinced that :> the settlement will have to be permanent before they engage on schemes of expansion on any large scale.