COMMERCIAL SUMMARY.

Manawatu Standard, Volume LVII, Issue 207, 2 August 1937, Page 5

COMMERCIAL SUMMARY.

LONDON MARKETS CHEERFUL. BUTTER VALUES FIRM. LONDON, July 31. Contrary to expectations the markets had a cheerful week, though the volume of business was not large. Some sections re corded sharp rises, notably gold shares. Pekin is too far away to disturb any but foreign bondholders. Tho Stock Exchange is disinclined to take a gloomy view of the European situation. Gilt-odged securities are firm. The new Iraq loan opened at 24 per cent, premium. Industrial issues are quietly stoady, especially iron, steel and coal, while shipping shares continue strong favourites. A holiday atmosphere, however, pervades the city and there is no likelihood of much activity for several weeks. Bradford dealers oxpeet to havo to face more competition from Japan at the forthcoming woof sales. They anticipate that Japan is likely to bo a heavier purchaser this season, as stocks must be light. Military activities should also increase her demand, though the Ministry of Commerce significantly urged the industry _to use larger quantities of “zellwolle” in conjunction with wool. At present about 15 per cent, is being used. . Rubber provided the week’s disappointment, but the Financial News says that the prico cannot remnin long at tho pm* sent level. Tho market expects a revival of speculative activity in the autumn. Amcrioan buyers who are not well covered have ulrondy started to buy freely. Metals are quiet. Lead . has fallen to approximately tho same price as spelter. The jump in wolfram was due to fears that the S-ino-Japanese. dispute would interfere with Chinese shipments. Butter remains firm, blit there is little business passing at present prices, -traders do not anticipate any appreciable break, hut buyers are becoming cautious and speculative interest is not warranted. A further small appreciation may occur during the next week or two, but it is unlikely to be accompanied by any volume of. business. Cheese also is higher hut. Gillanders in surveying the prospects of the forthcoming Empire egg season consider that values' will not deviate materially from those of provious years, but emphasise that it is dangerous to allow shipments to arrive too late, when unforeseen happenings can cause heavy losses.