MONEY AND MARKETS

Evening Star, Issue 22515, 7 December 1936, Page 12

MONEY AND MARKETS

BRITISH TRADE SUMMARY EFFECT OF CONSTITUTIONAL CMSiS 810 SETBACK FMUMIE STOCKS Frets Associiition—By Telegraph—Copyright LONDON, December 5.. The Constitutional crisis gaye the stock markets, which generally have successfully resisted foreign political developments, the biggest setback during two years, with sterling weak. Foreign stocks sold considerably, especially gill-edged securities, on Wednesday,. The atmosphere calmed somewhat on Thursday, lower prices resulting in a moderate rally, but the market,' while convinced of the essential order of British constitutional forms, remained apprehensive to foreign and Imperial repercussions. Moreover, the position in Spain is still threatening. Business showed little increase on Friday, despite a better tendency. The chief operatorswere bargain hunters and bears,- Giltedged securities finished practically unchanged. Heavy industrials improved. WOOL POSITION STRONG. The trade 'supplement of ‘ The Times,’ summing up.the wool position, emphasises that most countries which have devalued their currencies have extended their interest in wool, thus expanding the wool demand when supplies of the old clip are at the lowest point for years, and demands must be met from current production, resulting in wool being in one of the strongest positions in recent years. Even cross-breds, despite accumulated surpluses, are well placed. The textile industry generally is adjusting itself to higher values.. Bradford is expected to regard New Zealand cross-bred prices as demonstrating that there is nothing freakish about the substantial rises elsewhere. The ‘ Yorkshire Post ’ points out that the cross-breds situation is unparalleled in living memory. Not only has the large New. Zealand crop and carryover been lifted within 12 months, but the Buenos Aires market has been cleared. Nevertheless, the opening of the 1936-37 season finds Britain more bare of unsold stocks than can be remembered by the, oldest traders. United States interest in cross-breds has increased owing to the need of importing carpet wool. She has even bought South American wool on sheep’s backs. She is now keenly interested in New Zealand. America expects a big increase in the retail trade, owing to renewed confidence and better employment following President Roosevelt’* re-election. .