LONDON MARKETS

Otago Daily Times, Issue 23110, 9 February 1937, Page 9

LONDON MARKETS

COTTON SHARES LIVELY TRADE IN BEEF SATISFACTORY (United Press Association) (By Electric Telegraph—Copyright) LONDON, Feb. 7. Herr Hitler’s speech,’ while scarcely a bull point, removed immediate fears and enabled the markets to overcome some of the previous week’s sluggishness, oils staging a small boom, which many people consider is firmly rooted in the good old principles of supply and demand. Cotton shares were also lively, and there was some request for iron, steel and gold shares, which are firm. The immediate outlook is not unpromising for most of the markets, but it is difficult to look three months ahead.

The attacks on the franc were so insistent that M. Auriol (French Finance Minister) was obliged to explain to Parliament that he was opposed to further devaluation. The flight of capital, which assumed serious proportions early in the week, is showing some signs ot slackening, and the franc rallied. Butter remains nervous. There is a definite lack of speculation and elasticity in the Empire product contrasting with the firmness ot Continental and even inferior Polish butter, which is realising 88s. This disparity between Empire and Continental butter seems absurd, but the supplies of Continental are on the short side. , T . . Cheese also is featureless. It is stated that, if certain importers are allowed a free hand, there will be a comparative shortage. The shortage of New Zealand is such that slight speculative buying will lift the market several shillings. Without such speculation easier prices are possible in the near future. The curtailment of shipments from New Zealand has lifted lamb prices. . . . The trade in beef is satisfactory, and dominion supplies are benefiting from this factor.