LONDON MARKETS

Otago Daily Times, Issue 23350, 16 November 1937, Page 9

LONDON MARKETS

INVESTORS MARKING TIME NASTY SHOCK FROM BRAZIL COMMODITIES FLUCTUATE (United Press Association) (By Electric Telegraph—Copyright) LONDON, Nov. 14. While investors have little cause for satisfaction at movements in the past week they have rather mote reason to hope Fot technical reasons, if nothing else some modest recovery should be imminent. The news from America encourages the hope that President Roosevelt at last is determined to make an effort to restore prosperity Pending a definite lead from America, London is tending to mark time. Australian and other dominion stocks share the strength of gilt-edged securities Foreign bondholders received a nasty shock from Brazil’s default, which has aroused fiercest indigna tion. Industrial stocks had rathei an unsatisfactory week. The 50,000 increase in unemployment was hardly encouraging The fluctuations in commodities have been extremely marked and nerve-wracking, and seemed completely demoralising on Monday, with tin at £ 175 and rubber below 7d. On Thursday the markets were as optimistic as they were de pressed on Monday, then again they turned erratic No doubt the commodity share market washed out the favourable news from the United States. Lead made a sharp recovery The expected break in butter has been more drastic than most traders bargained for. A complete wave of pessimism swept the markets on Monday. Holders became most anxious, and sellers’ prices were reduced 2s at a time in ah attempt to find new business. Prices are now largely nominal. Australian importers are finding difficulty in clearing current consignments. There seems no doubt that the higher retail prices in Britain have affected the consumption. Heavier arrivals early in December mfiy bring down the prices a further 20s before Christmas. Danish butter is also lower. Germany refusing to pay full prices.

The outlook for the London wool sales is obscure, and it is very difficult to estimate the probable demand. Nobody at Bradford seems to need wool urgently at the moment. Some Bradford dealers expect merinos to fall from 15 to 20 per cent, and fine medium crossbreds to fall from 20 to 25 per cent. The setback in recent months has been so sharp that restoration of confidence is becoming urgent.