MARKETS DEPRESSED

Evening Star, Issue 22449, 21 September 1936, Page 9

MARKETS DEPRESSED

LONDON STOCK EXCHANGE LIFELESS SALES PLEASE WOOL TRADE FURTHER DECLINE IN BUTTER Association—By Telegraph—Copyright LONDON, September 20. (Received September 21, at 11.35 a.m.) A crop of unfavourable rumours, especially connected with labour troubles in France and other international factors, dlpressed the Stock Exchange, which at present is in such a sensitive condition that even the flimsiest reports exercise undue influence. The public as a whole is keeping out of the markets, where there is a tendency to drift, though the undertone is steady. Most of the City financiers believe that France is nearer devaluation. The Government is finding it difficult to borrow internally. For this reason it is renewing inflationary borrowings from the Bank of France. Funds are again finding their way abroad, and are benefiting gilt-edged securities in London, which are further strengthened by a continued plethora of idle funds. Industrials have been somewhat neglected. Gold shares are patchy. WOOL. The wool trade is pleased at the favourable opening of the London sales, especially as some good buying has been done on German account. France is also operating, but Russia and Italy thus far are out of the market. ■ The opening values are maintained. While the sales have not resulted in an advance at Bradford, they provided a tonic. Buyers, however, are ■ inclined to wait and see whether values in Australia remain firm, despite the absence of Japan, which at present is paying a penny to two pence higher for South African wool than any other competitor can afford to pay. It remains to be seen how long Japan will be able to continue uneconomic buying. If Cape wools continue high some Bradford users may switch over to Australian wool. ‘ ■ BUTTER. The weakness in butter continues, and a further sharp decline in values resulted from forced selling on an unsupported market.' Continentals are similarly affected. The feeling in Tooley street is now definitely pessimistic and recovery in the near future is not expected. CHEESE. Cheese is disappointing in sympathy with butter. It is possible to buy New Zealand white at a shilling below the quoted prices. There is little chance of a speedy alteration in the situation. ’ .