HOME STOCK MARKETS

Gisborne Herald, Volume LXVI, Issue 20099, 20 November 1939, Page 7

HOME STOCK MARKETS

CONFIDENCE IN ALLIES REASSURING FACTORS WOOL EXPORT PROSPECTS (Elec. Tel. Copyright—United Press Assn.) (Reed. Nov. 20, 10 a.m.) LONDON, Nov. 19. City commentators agree that the performance of the stock markets is

amazing. Almost every section is firmer, especially gilt-edged Dominion stocks. The search for higher yields caused quite a run on Australian and Now Zealand issues, which are now in short supply. The Stock Exchange took the rumours of internal dissensions in Germany less seriously than the Paris Bourse, where prices strictly responded in the belief that the Nazi regime was cracking. London was more Influenced by growing confidence in the overwhelming strength of the Allies. Anglo-French Unity

The announcement of the British and French pooling of resources was made too late to affect the markets, but there is no doubt that it will be widely welcomed in the City, which has long urged close economic co-ordination. The Times declares that Britain and France will henceforth conduct the war with complete unity of control. The prime purpose of the British and French agreement is the protection of currency. Now it does not matter whether sterling migrates to France or francs go to London. The joint resources of Britain and France will stand behind the currencies and will ensure that foreign exchange is used only to purchase necessaries and make the best of raw materials, tonnage, production, and other economic factors essential to victory.

The commodity markets are featureless. Cotton failed to repeat last week’s pyrotechnics, though it finished the week 20 points higher in sympathy with the advance in the United States. Rubber Decline Rubber declined fractionally as a result of the quota increase, the purpose of which is to facilitate the accumulation of rubber required for the Rus-sian-American barter agreement. American consumption in October reached the exceptional level of 55,800 tons.

The British Government announced that it is purchasing the whole of the West African cocoa crop, not because of any shortage in Britain, but apparently to assure the native growers of a firm market.

Bradford welcomes the possibility of increased releases of wool for civilian purposes, as few firms are able to meet requirements. The trade is pressing for improved export facilities as it believes that there is a great opportunity of capturing enemy markets. It considers that exports could be speeded up without danger to the ho'nre position.