LONDON ’CHANGE

Hawke's Bay Tribune, Volume XVII, Issue 218, 29 August 1927, Page 5

LONDON ’CHANGE

REVIEW OF THE MARKETS BOOM IN ARTIFICIAL SILK CONFIDENCE IN WOOL CIRCLES. [By Cable — Press Assn. — Copyright.) (Received 29, 9.5 a.m.) London, Aug. 27. Activity in industrial shares has been a feature of the Stock Exchange throughout August, and instead of stagnation which usually marks this holiday month, there has been considerable liveliness in almost all departments of the miscellaneous market with prices higher all round. One of tho most active sections has been that of artificial silk shares, in which has been experiencing what can almost be described as a “boom,” and this received fresh impetus yesterday when it was announced that Courtaulds, Limited, which has a cipital of £20,000,000, had decided to exercise its option to work the Lilienfld process for manufacturing artificial silks. This is taken as an indication of further increase in the production of artificial silks, which has already begun to assume important dimensions. The development of this industry will be watched with interest in view’ of the extent to which artificial silk is coming into competition with wool.

Commenting on Australia’s New York loan, the “Statist” says: "Ensuing Exchange operations should prove a welcome source of strength for the sterling during the difficult months lying ahead. Evidently borrowing in New York is to become a permanent feature of Australian finance. This development should be genuinely welcomed. ’ ’ WOOL OUTLOOK. Discussing the wool outlook, the “Economist’s” Bradford correspondent says that many close observers of trade conditions predict firm to hardening prices during rhe next three months, but they do not appear to be too sure as to what will happen. However, there is general confidence in the immediate future. Top makers are adopting a very firm attitude in discussion of new business. All qualities of tops are well ahead of late rates, but it is difficult to induce spinners to pay more money except for small lots urgently required. Another wool expert writes: “The maintenance of the prices of Australian wool in the near future appears fairly well assured. There does not seem quite the same optimistic tone in France, but all reports from Germany are to the effect that the machinery is well employed. The only immediate indication in the Home trade of anything in the way of an advance in raw materials’ values is the smallness of stocks. Machinery consumption might be very much better.” BUTTER POSITION SOUND.

The butter position appears very sound, and the opinion generally held is that prices will harden. At present there is not much activity in colonial, but the undertone is strong, as there is not much Australian butter available here, and the stored stocks of New Zealand and other sorts are moderate. Additional strength is given the position by the receipt of cables that large shipments from Australia will not be made until late in October or November. As Continental stocks are being greatly reduced largely through German buying, and Argentine supplies are restricted owing to drought, there may be a shortage of butter before the new Australian arrived. DRIED FRUITS. The dried fruit trade is showing improvement, and stocks of Australian currants and lexias are practically cleared. Sultanas are also meeting with better demand, especially for cheaper grades. This is satisfactory, as stocks of this sort are plentiful. Oranges have declined materially in value this week, owing to abnormal supplies from South Africa. Further heavy supplies are expected shortly, and prices are likely to go lower, so perhaps it is as well that the prospective arrivals of Australian oranges only amount to a few’ hundred boxes.—(A. and N.Z.)