TREND OF BRITISH MARKETS

Timaru Herald, Volume CXLII, Issue 20474, 20 July 1936, Page 7

TREND OF BRITISH MARKETS

UNCERTAIN OUTLOOK FOR FINANCE WOOL AND BUTTER PRICES RISING United Press Association—By Electric Telegraph—Copyright (Received July 19, 6.30 p.m.) LONDON, July 18. British steel makers have undertaken to remain within the International Steel Cartel until 1940. It is understood the agreement will secure Britain the same proportion of the total steel exports as she has enjoyed under the 1934 quotas. The other conditions, included In the original pact, have been preserved unaltered. Any of the parties may terminate the agreement in August, 1938, on six months' notice. The question of export prices was not discussed, though it is expected the French producers, In consequence of their higher costs, will demand a revision. Stock Markets Firm The market is pleased as the result of the negotiations. Iron and steel shares are in very active demand. The undertone In the stock markets is firm. The glltedged lines received a renewed support, especially Australian. The volume of business in industrials is modest. Britain’s Improved Trade Lloyds shipbuilding returns are helping the shares of heavy industries. Olis are quiet and gold shares are erratic. “The Financial Times” considers that all trade indications point to a continuous Improvement. The record in shipbuilding will cause renewed activity tn many channels, not the'least in the depressed areas. Even international trade is slowly improving. Investors, however, are not yet confident regarding the political atmosphere in Europe, otherwise the improvement would have been more general. The Government’s assurance that It is not raising a defence loan this year should strengthen the gilt-edged stocks, and mean that there will be no need to close the capital market to new Issues, thus favouring Investment enterprise In new fields. Commodity Markets Commodities are quieter than last week with the natural reaction after sharp rises since the beginning of June, Wheat however remains a prey to weather rumours and scares. Canada is tending to replace America as the determining factor in prices. Manitoban was sharply marked up on reports of continued dryness. Australian is remarkably steady. The Wool Outlook Messrs Dawsons Ltd. commenting on the wool sales says: “The market was dominated by Russian and German operators. The Home trade was startled by the prices paid for crossbreds, though the statistical position is exceptionally sound. The future level of prices is not bound up in Japan’s action in the autumn. While her total takings from the world clips may be less, the offerings should ultimately be absorbed, in view of the real need for raw material in Russia, Germany and Italy. Nevertheless the marketing of the new clip, in view of financial hindrances, should be carried out cautiously. It was noticeable that towards the end of the sales, advances brought out orders from many quarters, which otherwise had shown little interest. This indicates a real demand and proves that manufacturers have orders on their books, which hitherto they have preferred to leave uncovered, in hope of lower values. No doubt a healthier atmosphere exists, as a result of the Improved market and good clearances. The usually difficult holiday period should be faced confidently without fear of severe shocks and fluctuations. "The Yorkshire Observer” points out that an unusual feature of the sales has been the Continental bidding for top lines of merinos. Apple Market Uncertain Australian and New Zealand apples totalled only 74,000 boxes. No pears in bulk are offering. The market has been disappointing and has been further prejudiced by the Jervis Bay’s stunners, most of which landed in a suffocated condition, causing buyers to lose confidence and thus adversely affecting Stunners in other vessels. Heavy quantities of New Zealand from cold store are offering, moreover Italian fruits are already appearing on the market. Stunners offered at Liverpool from the Themlstocles, Westmoreland and Otaio, also showed signs of suffocation. Upper Trend of Butter Prices The upward tendency of butter continued, certain holders not hesitating to take substantial profits. Activity extended to continental butters, as sellers were not anxious to come on the market, except at higher prices. As Germany and America are useful buyers, cheese has also improved, though the demand is largely speculative. Other commlties are uninteresting.