A SUBDUED TONE

Otago Daily Times, Issue 23385, 28 December 1937, Page 9

A SUBDUED TONE

LONDON STOCK EXCHANGE EFFECT OF CHRISTMAS WEEK

LONDON, Dec. 26,

The Stock Exchange is always subdued during Christmas week, and this year was no exception to the rule. Many city business men, casting a backward glance, consider that it is both surprising and encouraging that the markets withstood so well the strain of successive blows, commencing with the national de fence contribution, followed by the gold scare, the fall of commodities, political crises, the Wall Street slump, the Sino-Japanese war, and the Brazilian default. The net result of these shattering blows has been, in the words of tie Investors' Chronicle: “ Only a modest decline in business in Britain.' Government spokesmen and the leaders ot industry expressed confidence for 1938, and stated that any temporary trade recession would he met and overcome.

The immediate market outlook appears good. Most shares are quoted on the recovery of a reasonable yield basis. The prospects for a sustained advance eem to depend, of course, on the course of events in America, where the feeling is reported to be more'optimistic.

The actual course of the markets is featureless Gilt-edged stocks are steady, but f- reign bonds are under a cloud, especially Japanese. ■. diich reflect the Panay tension. Trading in industrials is mostly limited, but the tone ir firm Oils are firm. Gold shares are quieter, as the professional business is insuffi cient to keep up last week’s pace Commodities also are uninteresting Rubber is firm and butter is lifeless, values tending to be lower Buyers refuse to purchase except on the understanding that the butter is 'm immediate delivery. Cheese is also quiet.