LONDON MARKETS

Otago Daily Times, Issue 23886, 14 August 1939, Page 9

LONDON MARKETS

PERIOD OF DULLNESS BUSINESS NEGLIGIBLE SOME SELLING OF STERLING I United Press Association) (By Electric Telegraph—Copyright) LONDON, Aug. 12. (Received Aug. 13, at 9.30 p.m.) The most curious feature of dull markets has been the firmness of gilt-edged securities, which withstood both the Danzig fears and the pressure of sterling. Business, however, remained negligible. Even the New Zealand loan attracted so little interest that there have been fewer than half a dozen markings since the dealings were opened. The sponsors of the loan are not ready to sell at a discount. The Financial News considers that buyers are disinclined to bite until the Dominion has given clear proof that it is able to surmount its financial problems. The traditional August holiday quietude reduced business in industrials to a mere trickle. Rubbers absorbed most of the interest of speculators. The price of rubber is now the highest for two years. There has been some renewal of interest in base metal shares, but gold shares are inactive and inclined to easiness. There has been some selling of sterling during the past week in anticipation that the authorities will allow the pound to slide when the autumn pressure reaches its height. The underlying position of sterling has been weakened by the rearmament boom, and the balance of trade has already deteriorated sharply. Dutch guilders rose on a keen demand from banking and other institutions desiring to cover themselves in connection with the Mendelssohn issues. ■'■ Business at Bradford is at a standstill owing to the holidays. Most top consumers are adequately covered, and there is little chance of substantial new business until after the opening of the Australian selling season. Top-makers and spinners have as much work on hand as they can comfortably accommodate at this time of the year. Actually, they are behind with deliveries in connection with Government contracts.