LONDON STOCK MARKET

Greymouth Evening Star, 20 November 1939, Page 8

LONDON STOCK MARKET

TONE MUCH FIRMER. [by CABLE—PBEBS ABSN. —COPYBIGHT.] LONDON, November 18. City commentators agree that the performance of the stock markets is amazing. Almost pvery section is firmer, especially gilt-edged Dominion stocks. The search for higher yields caused quite a run on Australian and New Zealand issues, which are now in slfort supply. The Stock Exchange took rumours of internal dissensions in Germany less seriously than the Paris Bourse, where prices strictly responded in the belief that the Nazi regime was cracking. London was more influenced by the growing confidence in the overwhelming strength Of the Allies. The announcement of the BritishFrench pooling of resources was made too late to affect markets, but there is no doubt that it will be widely welcomed in the city, which has long urged close economic co-ordination. “The Times” declares that Britain and France will henceforth conduct the war with a complete unity of control. The prime purpose of the Bri-tish-French agreement is the protection of currency. Now it does not matter whether sterling migrates to France or, francs go to London. The joint resources of Britain and France will stand behind the currencies, and will ensure that foreign exchange is used only to purchase necessaries? and make the best use of raw materials and tonnage production, and other economic factors essentiab to victory. Commodities are fairly featureless Cotton failed to repeat last week’s pyrotechnics; though it finished the week 20 points higher, in sympathy with the advance in the United States. Rubber declined fractionally as a result Of the quota increase, the purpose of which is to facilitate the accumulation of rubber required for the RussianAmerican barter agreement. American consumption in October reached the excepiOnal level of 55,800 tons. ■ - The British Government announced that it is purchasing the whole of the West African cocoa crop, not because of any shortage in Berlin, but apparently to assure native growers a firm market. Bradford welcomes the possibility or increased releases of wool for civilian purposes, as few firms are able to meet requirements. The trade is pressing for improved export facilities, as it believes there is a great opportunity of capturing enemy markets. It considers that exports could be speeded up without danger to the home position.