MONEY AND MARKETS

Evening Star, Issue 19551, 9 May 1927, Page 4

MONEY AND MARKETS

FORTNIGHTLY REVIEW BANK RATE REDUCTION STOCK EXCHANGE FIRM. Press Association—By Telegraph— Copyright. LONDON, May 7. (Received May 9, at 8.5 a.m.) The reduction of the bank rate a fortnight ago has had a salutary effect on tiie Stock Exchange, and most departments are active and iirm. Investment stocks especially have felt the benefit of cheaper money, and have advanced all round. Notwithstanding the flood of new capital issues, amounting to over £20,GU0,000 in ten days, most _of which have ‘ been oversubscribed, colonials have participated in the general demand, and new scrips show a marked firmness, Commonwealth 5 per cents, having advanced to threesixteenths premium and New Zealand to five-sixteenths.

There is now a pretty general belief that the bank rate will be further reduced to 4 per cent, in the near future. Many people expected a reduction this week, but they wore disappointed. Discount rates, however, have now got so low that the present 4J per cent, rate is ineffective, so that it is not surprising that the money market confidently anticipates an early reduction. Wo are still without information regarding the New South Wales conversion loan, but in as mucin.as £6,000,000 is repayable on June 1 and £5,000,000 on July 1, the flotation cannot be delayed much longer. WOOL PROSPECTS. Tho wool sales are proceeding satisfactorily. Prices seem to bo established at a basis of par to 5 per cent, decline, compared with last sales, and most people in the trade expect values to remain about this level. According to a' -well-informed Bradford correspondent the outstanding fact of the position is that the sales made no detrimental impression upon tho Bradford market. London rates for raw material are still relatively dearer than Late quotations for tops. As there is no wool available at prices which justify a decline in the quotations for tops these are firmly maintained, and since the auctions opened there has been an improvement in the bidding. A strong impression exists that the sales will close at the best point of the series. It is not improbable that the auctions will provide the incentive required to bring out new business in tops, which tho volume of current inquiry indicates is in the background. THE APPLE MARKET.

Tho apple trade continues good, finest Australians slid New Ze a lands realising high prices, but unfortunately a considerable proportion of tho fruit is not altogether satisfactory. Many Tasmanians are only moderate in quality and somewhat overripe. Bitter pit is much in evidence in the Western Australian as well as tho Tasmanian fruit, especially in Ribston and Cox’s. There is a good demand for tho host apples from the Continent, and exceptional prices have been made at the Hamburg sales. Importers consider the prospects satisfactory for trade in good 'apples till mid-July, as the cold, dry weather hero and on tho Continent has been retarding the soft fruits which usually come in competition with apples.