SHOWING SIGNS OF HESITANCY

Timaru Herald, Volume CXLV, Issue 21086, 12 July 1938, Page 7

SHOWING SIGNS OF HESITANCY

Outlook in British Markets INFLUENCED BY WALL! STREET Uncertain Trend in Commodities United Press Association—By Electric Telegraph—Copyright (Received July 11. 6.30 pan.) LONDON, July 10. Commodities are becoming one of the most anxiously watched barometei of Wail Street, and are now showing signs of hesitancy. The question is how far traders will follow the lead of stock markets and act in the belief that it is not wise further to delay restocking. Effect of Wall Street As far as America is concerned, the National City Bank of New York t kes the view that there is considerable under-production of many consumption goods compared with present purchasers’ demands. Consequently restocking is inevitable and is likely to be accelerated by Government spending. So far there is little objective evidence of business recovery in the United States. Leading trade journals report stagnant conditions in the steel industry, as consumers are considering how a reduction of prices will affect them. Most commentators in London agree that business activity in Britain is likely to fall in the next few months regardless of what happens in the United States; out current levels in industrial shares have more than discounted such a recession. If Wall Street’s anticipation of an autumn revival materialises, Britain will not lag behind. One concrete fact is the immensely strong technical position of markets both in England and America. It will take a considerable run of bad news seriously to weaken the price structure. Wool Market Quijt Wool traders do not expect a lively demand at the wool sales, which will be lasting only nine days. Trade on the Bradford market has not been bright since the May series and most firms pre fairly wel l stocked. It is generally anticipated that merinos will be little changed. Fine cross-breds may be somewhat in buyers’ favour, but medium cross-breds are likely to be at par to 5 per cent down. It will not be surprising, however, if low cross-breds are dearer. Butter is rather featureless. Lack of demand has especially affected Danish and other Continental descriptions. Some Tooley Street merchants are hopeful of better conditions in the near future. Cheese is similarly quiet. Buyers fear lower prices and consequently are not anxious to operate.