BRITISH TRADE REVIEW

Dominion, Volume 20, Issue 61, 6 December 1926, Page 11

BRITISH TRADE REVIEW

STOCK EXCHANGE DULL HOPEFUL OUTLOOK FOR WOOL BUTTER POSITION IMPROVING Fhe settlement of the British coal strike has not had the reviving effect on the Stock Exchange that was expected. The London wool sales, however, J are proceeding excellently, and the butter position continues to improve. , BY Telegbath.—Press Association. Copyright. (Rec. December 5, 5.5 p.m.) London, December 4. The three weeks preceding Christmas , are usually a dull time on the Stock Ex- , change, and this year is unlikely to ' prove an exception, especially as there are several adverse factors disturbing the markets. The chief is the Chinese situation, which has caused all Chinese bonds to fall heavily. Others are flue- j tuations of the franc, the fall in the price of rubber, and even the conclusion ; of the coal strike has not had the .effect that was expected. Cost of Mining Dispute.

Commenting on the subject, a wellinformed financial writer says: “It is not altogether strange that the settle- 1 ment of the coal dispute should have 1 been followed, not by a revival, but by rather a general reaction in most sec- ( tions of the Stock Exchange. As is often the case, many speculators bought < on the strength of the prospective • agreement, and have taken advantage of its realisation by securing whatever profits accrued. Moreover, the cost p. the dispute, previously overlooked, is now being daily reflected in, the reports of industrial companies, while fears are entertained that it mav be necessary either to increase the income tax or to place extra duties on luxury goods. The present reaction is. made to appear ■ less surprising when it is borne in mind < that the trend of prices during the most costly dispute in the country’s history has throughout been remark- ( ably steadv.” The writer proceeds to 1 compare the current prices of twentyseven representative stocks with those ruling on April 30. The comparison shows that the only weak. section ; among some industrial securities has 1 been textiles, which have, been affected bv independent factors. Investors, therefore, have to congratulate them- ; selves on the manner in which th* markets have emerged from the strike. Another financial expert says: “VTiile it remains to be seen whether there ( will be a revival of cheerfulness after > the final settlement is concluded, ire ' all events there is nothing in the pre- , sent stagnation of the markets as « whole to indicate any kind of adverse anticipation of prospects for 1927.” Wool Sales Proceeding Excellently. The London wool sales are proceeding excellently. Competition is good. The home trade is buying freely and Germany is operating actively. Even France, which is handicapped by ex- ; change, is taking a'small quantity. A’ Bradford correspondent writes: “The feeling here is decidedly hopeful. Operations are showing signs of expansion, and generally there are sound grounds for the optimistic tone and more cheer- , ful atmosphere which are noticeable on exchange. Events are considered to , be moving in the right direction. The fact cannot be overlooked that there , is sufficient competition to prevent any j weakening in the raw material value of Australia, New Zealand, and Lon- 1 don.” i Improvement in Butter Market. The butter -position continues to improve, thanks largely to the resumption of work in the coal mines. Buying lia® increased greatly in industrial centres and retailers are also filling needs for 1 Christmas markets, consequently there ( has been a satisfactory reduction in stored stocks, and the prospects seem favourable for a continuance of strong markets. The news of the drought in New South Wales and Queensland ' is also having a considerable effect, and some buyers are reported to be , operating in anticipation of short supplies early in 1927. The 1 multiple shops are raising the retail price of colonial from Is. sd. per Th. to Is. 7d. next week, but it is not ex- i pected that the'advance will have any . effect on consumption. The Metals Markets. In the non-ferrous metals markets, as on the Stock Exchange, the advent ( of peace in the coal industry has not had the favourable effect which might i have been expected One metal broker , writes: "The happy change in the coal i situation has chanced to coincide with very subdued reports of trade on the Continent, and buying here on a general scale is unlikely- till work can be resumed without restriction; there- ' fore we must be prepared for a quiet time this side of Christmas.”