MARKETS VERY WEAK

Nelson Evening Mail, Volume LXXI, 1 May 1937, Page 9

MARKETS VERY WEAK

CONTINENTAL BOURSES SEVERELY HIT HEAVY WAVE OF SELLING ON WALL STREET POOR RESPONSE TO DEFENCE LOAN [Uuited Press Association— By Electric Telegraph—Copyright] (Received Ist May, 9.55 a.m.) LONDON, 30th April. The Australian Associated Press city editor says that although there are signs of sub:';antial discriminating buying, markets are very weak. Gold shares were again sold, and oils and industrials are depressed. The weakness of markets has now spread throughout the world. Continental bourses, especially Paris, are all severely hit. Wall Street was subject to wave after wave of selling, and even stock exchanges far away as Bombay have broken badly. City men declare there is poetic justice in the result of the first instalment of the Defence Loan, of which only 20 per cent, is believed to have taken up. It opened at i per cent, discount. The cHy wonders whether the Chancellor will at last realise that he cannot maintain gilt edged if assaults on equity and the taking of risks are to be an element in business.

Four powerful mining finance houses namely the Central Mining Corporation, Rand Mines Limited, Consolidated Goldfields of South Africa, and the Sir Abe Bailey group, agreed to support shares in which they are interested to the extent of £4,000,000, resulting in the markets closing on a more cheerful tone.