CALM AFTER STORM

Evening Star, Issue 22626, 19 April 1937, Page 12

CALM AFTER STORM

LONDON STOCK MARKETS WEEK OF TERRIFIC HAMMERING NO BUDGET SURPRISES EXPECTED Press Association—By Telegraph—Copyright LONDON, April 18. (Received April 19, at 11.40 a.m.) The terrific hammering that the markets have endured for more than a week culminated in the rout of commodities, rubber alone holding its ground. The world’s grain markets experienced the worst day for years, being subject to a terrific flood of selling last Friday. Copper fell the same day five guineas—the severest break in the memory of the metal exchange. Other base metals are weak. Cotton broke sharply owing ■to rumours, probably unfounded, that the ' English, French, and American Governments had reached an agreement to control commodities. The trend of business generally, however, has been little affected. Industrial activity continues, and profits are rising. The next few, weeks should see a slow, healthy recovery. A moderate improvement in rubber seems possible. The stock markets, except gold shares; 1 have not endured the hammering commodities received. Commodity shares held their ground well, as they never followed the rise in raw materials to the limit. Thera has been some buying pf leading industrials, also shipping shares, which have developed a minor boomlet. Australasian United Steam Navigation shares, which were overlooked in the early stages of the advance, jumped to £7 on Friday in a narrow market. The outlook seems bright, especially as the ‘ Economist’s ’ analysis of industrial profits shows that there is no evidence of a check to earnings. The City does not expect Budget surprises, though extraordinary precautions have been taken to avert leakages, including deferring the Budget Cabinet meeting until Monday. A tax on cosmetics and patent medicines is probable. The petrol tax may also be increased or alternatively a higher horsepower tax on ears. Ass income tax is considered inevitable.