HOLIDAY REACTION

New Zealand Herald, Volume LXXV, Issue 23104, 1 August 1938, Page 7

HOLIDAY REACTION

LONDON STOCK MARKETS SATISFACTORY UNDERTONE INFLUENCES FROM OVERSEAS (Received July 31, 5.5 p.m.) LONDON. July 30 The London stock markets, to an increasing degree, are succumbing to holiday anaemia. Prices in all sections are drifting downward, but the undertone is satisfactory. The reassuring words of the Prime Minister, Mr. Chamberlain, regarding the international situation did not carry enough conviction to cause a rally. The tendency of gilt-edged stock is easier. The tone of foreign 'bonds is healthy, with institutional support for Chinese, hut Japanese declined further. The improvement in the European political outlook is not reflected by foreign exchanges. There has been rio repatriation of European capital from New York. The small recovery of sterling was helped by Japanese gold sales lor raw materials. Commodities are irregular, although mostly better 011 balance. Copper touched the highest level since tho end of February. Unseasonable weather has affected the wool distributive trades, and it is doubtful whether they can make up the lost ground. The City will watch events in the holiday season with unusual closeness. Opinion is fairly evenly divided about probabilities. Therefore, few are inclined to open up new commitments. It appears as if the peak of the "boomlet" in Britain and America has been alreadj' reached for the time being. Tho Bankers' Magazine valuation of 365 stocks in London reached tho maximum on July 18 and 19, when the list showed an appreciation for the month of £143,000,000. Fixed interest securities increased 1 per cent, and the variable dividend list 4$ per cent. Business indices do not show tho same recovery. Therefore the Federation of British Industries emphasises that ''the technical recovery of tho stock and commodity markets is welcome provided it is recognised as an interruption only and the cyclical trend is not mistaken for real recovery." This opinion is not shared in Government quarters. Tho output of iron and steel has further declined, but the building trades havo maintained a surprisingly high level of activity. Reports from tho industrial centres are colourless. There has been scarcely any improvement in the volume of new orders, but inquiries are coming in faster and manufacturers expect a revival of acti vity after tho holidays. Wool and cotton textiles, however, are quiescent, and this is responsible for a lar<re proportion of tho increase in unemployment. Tho rubber outlook is rapidly improving.

FOREIGN EXCpANGES FLUCTUATIONS IN LONDON (Received July 31. 0.35 p.m.) British "Wireless RUGBY, July 30 • The following rates on foreign exchanges are current, compared with the cabled quotations on July 29 and par: —

tNominal. *Sellors. NEW ZEALAND QUOTATIONS The Associated Banks (other than the Bank of Now South Wales) quoted the following dollar rates on Saturday, on a New Zealand currency basis, subject to alteration without notice:— Selling: United States Canada T.T 3.94 3.95*4 On demand .. 3.94% 3.05% Uy On demand .. 3.98% 8.99% Following are the latest rates for purchases and sales of foreign exchange quoted by the Bank of New South Wales, Auckland. They are subject to alteration without notice: —

CUSTOMS EXCHANGE RATES Finally declared rates of exchange ruling at tho date of departure of vessels named aro shown in tho following table: — Mariposa, America, dollars .. .. 4.02 Marioposa, Canada, dollars •. .. 4.07 GOLD AND SILVER QUOTATIONS IN LONDON (Received July 31, 7.5 p.m.) LONDON, July 30 ' Fine gold is quoted to-day at £7 Is Gd an ounce, compared with £7 Is Ojd yesterday, and £7 Is 5d on Thursday. Silver was quoted yesterday at 10pel an ounce spot, and 19 5-lGd forward, compared with 19 5-lGd and 19 3-16(1 on Thursday. Tho quotation for silver at per fine ounce yesterday was 20|d, compared with 20 13-lGd on Thursday. MINING SHARES IN LONDON LONDON, July 20 Quotations on tho mining market today included the following:—Clutha River Company, buyers, 10 Jd; sellers, Is lid; Molyneaux River Company, buyers, 10Jd> aellers, 1b lid.

July 30 July 29 Par Montreal, dol. .. 4.93 Vo 4.92% 4.860 New York, dol. 4.91% 4.91% 4.86 Paris, fr. i7sy 0 178% 179.00 Brussels, belga. 29.09 29.07% 35.00 Geneva, fr. 21.45% 21.44% 25.22 Amsterdam, gr 8.957, 8.95%, 12.10 Milan, lire 93% 93% 12.23% 19.39% 92.00 Berlin, r.m. 12.23% 20.43 Stockholm, kr... 19.39% 18.159 Copenhagen, kr. 22.40 22.40 18.159 Oslo, kr. 19.90 19.90 18.159 Vienna, sch. .. 26M>+ 26%+ 81.585 Prague, kr. 142% 142%, 164.25 Helsingfors, mark 226% 226% 193.23 Madrid, pes. .. 55t 55+ 25.221 Lisbon, escu. . . 110%„ 110 Athens, dr. 547% 375.00 Bucharest, lei... 670 670 813.6 Rio do Janeiro, m. 2*% a d» 2 2 %ad* 5.899d Buenos Aires, pes. 18.89 18.89 11.45 Montevideo, dol. 20d 20d 51d Bombay, rupee.. 17 5 /i 0 d 8%d+ 17% 0 d 18d Shanghai, dol... 8%d+ — Hongkong, dol. 15d lod — Yokohama, yen 14 d 14d 24.58d Batavia, gr. .. 8.94 8.93% 12.10 Belgrade, din... 217 217 276.31 Warsaw, zloty.. 20.15 26.15 43.38

To £ 1 N.Z T.T. On Demand Currency Selling Buying Soiling U.S.A.. clol. .. 3.0302 3.0837 3.0132 Canada, dol. .. 3.0517 3.0002 3.0557 Belgium, belga 23.252 23.637 23.263 Czecho'vakia, cr. 113.66 — 113.71 Denmark, kr. . 17.803 18.263 . 17.809 Finland, Fin. ins. 179.G2 185.82 179.72 Franco, fr. 142.13 145.63 142.17 Germany, r.m. . 9.750 — 9.764 Greece, drachmas 420.54 — 420.84 Holland, fl. .. 7.148 7.338 7.152 Italy, liro 74.88 — 74.93 Java, fl. 7.125 7.315 7.120 Norway, kr. .. 15.802 16.242 15.808 Sweden, kr. .. 15.400 15.845 15.400 Switzerland, fr. 17.141 17.516 17.140 Noumea, fr. .. 140.38 147.63 140.42 Papeete, fr. 140.53 147.53 140.57 N.Z. penco to — Hongkong, dol. India, rupee .. 18 25-64 18% 18 25-61 22 20-04 22 3-32 22 20-64 Ceylon, rupee 22 20-04 22 3-32 22 20-64 Japan, yen .. Shanghai, dol. 17 0-10 — ■ 17 0-16 Nominal 35 1-64 Singaporo, dol. • 35 1-64 34 7-16 Chefoo, dol. .. Nominal 30 17-04 Manila, peso . 30 17-64 20 43-64 Tiio cost in New Zealand currency of the nound sterling, and of the principal overseas units, on the latest quotations, is as follows: —• Par Present Price s d s d London, pound .. 24 10.65 20 0.00 Australia, pound .. 10 11.40 20 0.00 Fiji, pound . New York, dollar .. 22 a 5.66 0.70 20 0.00 4 1.31 Montreal, dollar 5 0.54 4 1.31 Paris, franc . "Berlin, rcichsmar 0 1.68 0 1,34 k .. 2 0.30 0 11.74 Copenhagen, krono .. 1 1.32 1 1.22 2 0.58 Yokohama, yen 1 5.41