TRADE SUMMARY

Nelson Evening Mail, Volume LXX, 21 September 1936, Page 5

TRADE SUMMARY

RUMOURS DEPRESS STOCK EXCHANGE WOOL TRADE PLEASED WEAKNESS IN BUTTER CONTINUES (By Telegraph—Press Association) (Received 21st September, 11.35 a.m.) LONDON, 20th September. A crop of unfavourable rumours, especially connected with labour troubles in France and other international factors depressed the Stock Exchange, which is at present in such a sensitive condition that even the flimsiest reports exercise undue influence. The public as a whole is keeping out of the markets, where there is a tendency to drift, though the undertone is steady. Most city financiers believe that France is nearer devaluation, as the Government is finding it difficult to borrow internally. For this reason it is renewing inflationary borrowings from the Bank of France. Funds are again finding their way abroad and benefiting gilt-edged in London, which were further strengthened by the continued plethora of idle funds.

Industrials have been somewhat neglected and gold shares are patchy. The wool trade is pleased at the favourable opening of the London sales, especially as there was some good buying done on German account. France is also operating, but Russia and Italy are so far out of the market. Opening values have been maintained. While the sales have not resulted in an advance at Bradford, they have provided a tonic. Buyers however are inclined to wait and see whether values in Australia will remain firm, despite the absence of Japan, who is at present paying Id to 2d higher for South African, than any other competitor can afford to pay. It remains to be seen how long Japan will be able to continue uneconomic buying. If Cape wools continue to be high, some Bradford users may switch over to Australian. The weakess in butter has continued and a further sharp decline in values resulted from forced selling on an unsupported market. Continentals are similarly affected. The feeling in Tooley Street is now definitely pessimistic and a recovery in the near future is not expected. Cheese is disappointing in sympathy with butter. It is possible to buy New Zealand white at Is below the quoted prices. There is little chance of a speedy alteration in the situation.