LONDON MARKETS

Otago Daily Times, Issue 23064, 15 December 1936, Page 9

LONDON MARKETS

STOCK EXCHANGE FIRMER

DIFFICULT WEEK OVER

(United Press Association) (By Electric Telegraph—Copyright)

LONDON, Dec. 13,

The Stock Exchange ended one of the most difficult weeks ever experienced firmly. General relief at the settlement of the crisis led to marking up of prices, but actual business at no time was extensive. Investors throughout the week remained calm, keeping commitments to a festricted scale. It was not disrespect for the former King that recovery followed news of the abdication, but the inevitable relief that the period of suspense had Most city business men deeply deplore the bitter decision which Edward faced, and see him go with tha most sincere regret. It will take some time to determine the precise effects of the week’s events on business. Pessimists say retail trade is affected, though one would never guess it from the congestion in Oxford street and the week’s bank return. Industry was probably even less affected. The -crisis was over too quickly to have much influence. The international situation should begin to reassert its influence on future movement of prices. This will largely depend on whether Britain and France are able to continue to restrict the conflict in Spain. Commodities generally are firm. Butter continues featureless, and the demand is very quiet, but there is an attempt to stabilise the market at present values. There seems no prospect of much alteration in the immediate future. The extra weight of arrivals around Christmas is likely to lead to lower prices early in the New Year, with the possibility of a more stable market, giving safer ground for buyers to operate on.

Cheese is also lower, but the temporary scarcity of New Zealand led to a small recovery. The outlook is like that for butter, with uninteresting markets and the prospect , of lower values in the New Year.

Traders are unable to take an encouraging view of the egg market. Quantities of Empire eggs have been placed in cold store in the hope of a recovery in January. A big increase in Continental production makes the outlook unpromising.