BRITISH STOCKS

Hokitika Guardian, 14 September 1937, Page 2

BRITISH STOCKS

A SAVAGE BLOW. FROM WALL STREET SELLING. i LONDON, September 11. | 1 The reviving cheer 1 uiness ot the , , London markets has received a savage , blow from Wall Street. It is idle to ; , deny that the wave of selling there is ■ , causing considerable anxiety in view j of the amount of European money invested in America, which most people this side of the Atlantic consider has •several years of economic recovery ahead. The opinion of many city business men, in spite of the week’s happenings, remain as optimistic about America as America is apparently pea- 1 simistic about Europe. The immediate outlook for markets iu London is unsettled, but dealers are deriving some comfort- from the comparative calmness. Gilt edgeds are almost cheerful. Sino-Japanese loans moved widely and erratically. Industrials presented few features of interest. The initial cheerfulness in oils has not been maintained. Mines are irregular, and rubbers are slightly firmer, but shares , have not followed the whole improve- ) inent in the price of the commodity, I stocks of which have been increasing less rapidly than expected. Weaker Wool Prices Predicted. It lias been seldom more difficult to estimate the probable demand at the London wool sales. Bradlord s pur- | chases will he governed by immediate requirements more than anything else. Many firms, which are fairly well stocked with tops, may he disinclined to operate. The Continental demand is obscure, as some Bradford merchants expect a drop of 5 per cent on merinos compared with the July series. Others think 10 per cent nearer the mark in order to bring prices into line with Bradford’s quotations for merino tops. The demand for crossbreds is expected to bo good, as stocks in all consuming countries are low. Some speculative sales in South American wool are reported in London from the sheep’s hack. Fine crossbreds will probably open 5 per cent cheaper than in July. No chvnge is expected in other qualities. The butter market is featureless, and the demand poor. The bulk of the stock at the moment is in the hands of importers, who are endeavouring to hold the position in face of the apathy of buyers. The-immediate outlook is for a fluctuating market. Cheese is equally quiet and irregular.

Cood Lamb Prospects. There has been a good demand for lambs this last few weeks, and early arrivals should meet an excellent market, Home supplies are limited, and are commanding high prices, and therefore will not compete with frozen. Mutton is quiet in spite of the small supplies available. Any improvement in the demand must result in higher prices.

The dearness of chilled beef resulted in an increasing inquiry for trozen. The available supplies are limited, and consequently business is good. The hides market is weaker.