STOCKS AND MARKETS

Dominion, Volume 14, Issue 31, 1 November 1920, Page 5

STOCKS AND MARKETS

MARKED APPRECIATION OF STERLING

WOOL TRADE STAGNANT

By Telegraph-Prem Anocl&tlon-OoprrleM CRec. October 31, 5.5 p.m.) London, Ootober 30. News of the settlement of the coal strike had no great effect on the Stock Exchange, for the feeling there regarding the result had boon optimistic throughout the- week. Gilt-edged securities have been very quiet,. but generally firm, except consols, which have been somewhat freely offered 1 . Colonial stocks have been mostly dull, especially Queensland's, which have failed to mnko any recovery on what a "Statist" newspaper calls "Mr. Theodore's somewhat dubious recantation." Homo railway stocks have naturally benefited from the coal settlement, also shipping shores, in which there has been fair activity, a. ieature of the week has been the marked appreciation of sterling in. moat foreign countries, especially neutral countries Jlns is partly attributable to the coal sottlouicnt, but chiefly to Britain's action in renouncing reprisal rightsagainst Germany. One result of the reprisal clause was an accumulation of German balances in foreign centres, especially Holland. It is now anticipated that these balances will be transferred to Britain.

The Wool Trade, The wool trade continues stagnant. There is more inquiry from tho United States, but very little from France and Belgium. A stable basis for raw material has not yet been reached, end cannot, be until prices for finished goods have been lowered and export tr»de increased* -which is- dependent on more stable exchanges and a better financial position on the Continent. There is still practically no business being done in Bradford tops. In expectation of lower values in Australia, forward quoin, lions have been reduced 1 to super sixtyfours, nominally 63d. to 66(1. per lb.. and ordinary sixty-fours, 57d., without attracting buyers. There is some German inquiry for crosabreds? The carters' strike continues, and merchants still hold full 6tocks of high-priced goods. All sections of the trade we pursuing a hand-to-mouth policy. Short timo continues, particularly in combing and sorting, also the heavy wool trade, in which most of the 'machinery is working only twenty-four to thirty hours a week, Tho cancellations in this trade .have increased considerably during the last fortnight, homo and foreign customers can. celling on the ' slightest, pretext. This is becoming so serious that manufacturers have formed a committee to deal with cancellations, and are taking steps to publish a black list of merchants who have shirked their legitimate obligations. Decline in Wheat Prices Expected. The wheat traders are anticipating a, world-wide decline in prices if the Auetralian and Argentine harvests turn out as well as they promise. They also expect early de-control; which will lower prices here, as it has already done in Canada. The Metal Markets. The metal markets closed firm, copper recovering after the weakness early in the week, owing to competition from all quarters. The transactions in tin have been much larger than for 6ome time past,, but there is not much consumptive .buying. The bears have been actively covering Continental speculators. There is much evidence that spelter production in Belgium seems likely to decrease, as present prices are unremiuierative, and supplies of concentrates are not plentiful. Producers are not keen to procure additional raw material, as stocks of zinc in Belgium are consider-able'.—Aus.-N.Z. CaMo Aesn.