FINANCIAL BAROMETER

Grey River Argus, 15 June 1942, Page 7

FINANCIAL BAROMETER

LONDON STOCK MARKET FALLS BACK. LONDON,' June 12. The • London' Stock Exchange suffered this week its first shake-out since the Malayan disaster. Reports of Japanese landings in the Aleutians first pricked the 1000-bomb-er boom and markets then boiled over at the Bir Hacheim news and at reports of the German offensive in the Ukraine. The Anglo-Soviet treaty helped to improve the tone on. Friday and markets closed fairly steady, but with buyers still holding back. The set-back is a useful technical correction 'after the sustained rise since March. Indian Port loans are outstanding in the overseas issues, with a spectacular rise of up to twenty-five points after ithe announcement that the Indian Government’s undertaking, in the event of adverse war developments, to ensure sufficient funds for the service' of the loans. The market interprets this as illustrating the concept that, in Government, municipal and public board loans the constituents of the Empire stand or fall together. The implications of this have created a better sentiment elsewhere, notably in Australian medium terms. With additional assistance in the Pacific war, New Zealand stocks are generally saleable at minimum rates or above.