LONDON MARKETS

Wanganui Chronicle, Volume 79, Issue 277, 23 November 1936, Page 8

LONDON MARKETS

Review of Week’s Trade SECURITIES STEADY HIGHER WOOL PRICES BUTTER AT IMPROVED LEVEL '.By Tclesrra ph—Press Association—Copyright] Received Nov. 22, 7.30 p.m. LONDON, Nov. 21. Nervousness, due to the Continental developments, notably the threat to bombard Barcelona, and the American Reserve Board's proposal to check speculation, were the chief reasons for the security markets finishing a somewhat quiet if steady week dully. Although international crises are now almost weekly affairs, their results thus far have been so intangible that investors are apparently of opinion that a crisis can only affect the markets if it threatens specific British interests involving a threat of war. Nevertheless, the legal position regarding blockades, rights of search on the high seas and the background of intensification of European antagonisms, has caused a limitation of operations. Another reason is the brokers’ reaction after last week’s heavy settlements. Dealings in the British hundred million loan opened at one-sixteenth discount and closed at par. Applications to £5OOO were fully allotted and the others received 80 per cent of their requirements. The issue caused a: quietness in gilt-edgeds, inducting Do- , minions. Industrials were generally cheerful. Outlook for Wool “The general question is whether wool is going to be still dearer,” says the Yorkshire Post, commenting on the advanced prices in London, now 5 per cent about the opening. It adds that although prices compare startlingly with the previous series, they show that London has amply endorsed the current oversea values. Moreover, it has proved the strength of the demand even at the high levels. Inded, the Home buyers'activities indicates the need for augmenting the supplies of Merinos now arriving from overseas, while the eager competition for crossbreds shows the bareness of manufacturers’ supplies. Butter and Cheese Butter stocks in British cold stores are 21,248 tons, or 7848 tons in excess of the quantity held in November, 1935. Shipments afloat from Australia, New Zealand and the Argentine are 2528 tons less than in November, 1935. The Australian decreased production is causing firmness and expectations are that prices will settle down at the higher basis at least for a time. The cheese demand is good owing to the improvement in quality. There is a slight decrease in imports and supplies are quickly cleared.