ENGLISH MARKETS

Dominion, Volume 14, Issue 128, 23 February 1921, Page 5

ENGLISH MARKETS

BUSINESS IN STOCKS STAGNANT MORE INQUIRY FOR BUTTER By Telegraph—Press London, February 19. The hope that the removal of the excess profits duty would cause. a revival in Stock Exchange business has not been, fulfilled. Business for the past week has been stagnant, with a slight decline in values in most departments. The cause of the weakness is not so much the selling pressure—although the drop in consols was due to realisation of a large block—but tho almost total absence of buyers. The outstanding feature of the markets is weakness in home railways, following on the Colwyn Committee’s report, and the gloomy speeches of the chairmen of tne railway company meetings. Industrials are hlso flat, especially textiles, iron, and steel. The only good market, is in foreign bonds, which are firm and active. Tho money market is very short, credit supplies, owing to the heavy withdrawals in cash in connection with the payment of taxes, being limited. This stringency is likely to last till the end of the quarter. One satisfactory feature is the foreign exchange market. There is improvement in both dollar and franc, which: is mainly due to conditions in international trade. Four dollars to the pound sterling is predicted before long. Metals Situation. The copper market maintains a good tone, especially in America, although there are no signs of increased consumption. There is considerable activity here, with large “bear” covering orders. Eastern cablegrams state that the Federated Malay States Government has intimated that the accumulated stocks of tin will not be sold till a profit can be realised. The firngicss of the position in the East, coupled with reduced production in other parts of the world, has imparted a firm tone to tho tin market. despite the fact that consumption here and in America at present shows no sign of expansion. Lead consumption continues to be restricted. but it. should tend to increase, although tire normal level <annot be expected for a long lime. The spelter market will be maintained, although tho trade demand is insufficient to sunport it. Apparently prices are kept up by dealers absorbing offerings as they come along. Freights Very Dull. Freights are very , dull. Australian wheat fixtures, March-April, m 60s. to G2s. Gd. Tramp steamer finding the greatest difficulty to secure homeward cargoes. It is expected that many, owners and companies who came into the trade recently with small fleets will he compelled to liquidate or reconstruct, as the values of steamers have fallen nearly 70 per cent, as' compared with last March. Butter and Cheese. Butter is meeting with an improved inquiry, chiefly because the quality which the Government is distributing is excellent. Consumption seems likely to increase, but supplies are very heavy. A quarter of a million 'boxes arrived in one week. It is expected, the Government will maintain the present price till the middle of March, when a reduction will be made to 2s. Bd. or 2s. Gd. retail. . It is expected the United States is taking a considerable quantity of Danish, and that this is causing prices to harden, but the British price 'for Danish is still 2265. ner cwt. The'cheese trade is slow, arrivals being heavy. Five New Zealand steamer's with 102,000 crates are discharging, together with 8500 crates of Australian. Quotations are as follow: —New Zealand, white, 1-lSs. to 1505.: coloured. 15+s. to 1565., and occasionally 158 s. Australian is offering at 1465. to 1565. Government stocks of cheese are estimated at COOO tons. —Aus.N.Z. Cable Assn.