BRITISH MARKETS

Wanganui Chronicle, Volume 80, Issue 307, 28 December 1937, Page 11

BRITISH MARKETS

QUIETNESS FOR HOLIDAYS YEAR IN RETROSPECT. SHOCKS WELL WITHSTOOD. LONDON, Dec. 26.’ The Stock Exchange is always subdued during Christmas week, and this year is no exception. Many City businessmen, casting a backward glance, consider that it is both surprising and encouraging that the markets have withstood so well the strain of the successive blows, commencing with the national defence, followed by the gold scare, fall of commodities, the political crisis, the Wall Street slump, the Sino-Japanese war, and the Brazilian default. They note that the result of these shattering blows has been, in the words of the Investors’ Chronicle, “only a modest dec-line in business in Britain.”

The Government spokesman and leaders of industry expressed confidence for 1938. They stated that any temporary recession will be met and overcome. The immediate market outlook appears to be good. Most shares are quoted on a reasonable yield basis. There seems to be scope for recovery and prospects for a sustained advance to depend 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 are steady, but foreign bonds are under a cloud, especially Japanese, which reflected the Panay tension. Trading in industrials is most limited, but the tone s firm. Oil is firm, but gold shares are quieter as lhe professional business is insufiicient to keep up last week’s pace. Commodities are also uninteresting. Rubber is firm. The butter market is lifeless, and values are tending lower. Buyers refuse to purchase except on the understanding that the butter is for immediate delivery. Cheese also is quiet.