Stocks Recover

Hawke's Bay Herald-Tribune, Issue 90, 3 May 1937, Page 7

Stocks Recover

-Preis Aes.n.—

london markets sober up Trade Reyiew Is Much Brighter COMMODITIES STRONG

(By T«l«graph-

CopyrifhtJ

(Receaved 3, 2.30 p.m.) LQNPQN, May 2, There are already signs that the (Rarketn will be sober nest week- Ihe recent ljquidation has spent" itaelf, bqt it woujd be iwwise to prophegy, Thur«day's settlement ia awaitfd with some anxiety as heavy (Ufrerpnces mugt If jfc pasges without trouble, it will open the way to a, slqw recovpry on a brpad front. Invejitora ara already nibbljng at Iwgaips whioh ift mere normal times Woul4 be considered tqe gepd tp miss, The finanpial Press is advisipg caqtious purchases, stressing the attractivepess qf certain industrjals and fprecasting a pharp recQvery pf rpbbera, of which dealers are short of stocks. The Economist ccmsiders that Mr Neville Chamberlain was undoubtedly jright in stressing the fact that the eft'ects of the profits tax wero being pxaggerated, Nevertheless normal cpnjditipns wero impossible until tax uncertaintieg were pleared up, The present quotations of many so-und shares Are the result of fear rather than of eareful weighing of inyestment factors. Nevertheless there- is scope for a further all round increase. The earning!" of the industry on the scale of the pagt four years are becoming narrower. Costs are rising and labour is - restive . Opportunities for increasing the profits of some developing industries still exist, but is will not be surprising if a major rise on equities is past. One result of the present heartfeaTching has been to focus attention on the importance of maintaining Britain's export trade. There is a growing feejing that manufacturers Bhould not allow rearmament orders to lead ?0 industrial disequilibrium or to draw off productivQ activity from • the export tracles on which Britain'a prosperity rests. ' The movement in favour of the remission of the Ottawa Agreement is Increasing. Even the Government is tealising the importance of widening the area of world trade and lowering tariff barriers in order to * encourage foreign eountries to buy more Britisb •sports. Commodities h&ve suffered from heavy selling bnt have withstood it reasonably well, The Financial News considers that the long-term trend of commodities ahould be definitely upjvards, though henceferfh it will be more selective. The strength. of wool ia espeeially noir able," and if Russian competition develops next ifcek, prices will go still hifcher. * Bntter ia quiet on a Tather diffienlt market, but Tooley Street merchants do not antieipate a break in prices. ' Supplies of fresh apples appear to be inadequate to meet the strong demand, and prices are firm. This situajkion ia likely to contihue, as buyers are ■hort of itocks.