COMMERCIAL

Greymouth Evening Star, 18 April 1938, Page 8

COMMERCIAL

LONDON MARKETS. [by CABLE —PRESS ASSN. —COPYRIGHT.] LONDON, April 15. Although there is little expansion in business, the stock markets again showed, a propensity for rapid improvement. Signs of reviving public interest combined with the more settled political outlook caused the bears to rush to cover. The shortness of stocks led to prices being sharply marked up against them. Gilt-edged led the advance, followed by Dominions, with the exception of New Zealand, which remained sluggish. Reports of the Chinese successes stimulated Chinese bonds, while Japanese continued to fall. Austrian and German issues failed to hold their recent improvement. Confidence was most marked in industrials, steels, engineering, aircraft, and electrical shares all being supported. The majority of leading miscellaneous industrials gained round a shilling a. day. Even rubbers were shaken out of their lethargy, and recorded a sharp advance. The support for gold shares wds mainly professional. President Roosevelt’s “pump priming” plans caused a flurry in commodity markets. Non-ferrous metals, oil, rubber, and wheat are all dearer. The demand' for copper rose considerably as the price went up, indicating that, consumers are not. well stocked. Tin was subject to fluctuations. The demand for lead and zinc was satisfactory, United States zinc statistics exercising a • favourable influence. Cotton, however, is still in the doldrums. Wool remains quiet. Most of the mills are still on short time, with deliveries far below normal. Wholesalers still lack confidence, and are reluctant to place new orders. Nevertheless, lower prices appear unlikely. Any sustained advance in raw material would stimulate considerable activity throughout the industry. There is little to report from the principal industrial centres. Coal faces a persistent decline in export orders. The latest, shipbuilding returns show a further decline in new tonnage. There were only 173,000 tons in the first quarter of 1938, compared with 217,000 in the previous quarter. Similarly, the volume of new orders for iron and steel is falling off as a result of stocks accumulating.