Markets Nervous

Hawke's Bay Herald-Tribune, Issue 185, 23 August 1937, Page 5

Markets Nervous

l— Preas Assn.—

THE FAR EAST CRISIS How Will it Affect Wool Saies? L0ND0N REACTI0NS

(By Tblegrapl

Copyrlghfc.1

(Eeceived 23, 10.'20 a.m.) LONBON, Aug. 22. *'Not sinee the sanCtions crisis in {September of 1935 has the market taken the threat of uudeclared. war so seriously," declares the Ecouomlst. 'Tlie boilibardmeiit of Shanghai has catlsed gelieral dis-may cwing to the considerable British interests involved. Business has fallen away to & trickle. Almost every class of secutity has tended io sag. The brunt of t'lie deeline has naturally fallen on Far Eastern bonds. ''TJnfortunately," the papef adds, "the European situation, in view of the Mediterranean and Czeeho'slovakian tension, does not offier anything to eii'set the pessimism over the Far East, whefe a long war is possible. it is pointed out, however, that Japan is less financially equipped to stand the strain of prolonged hostilities than when she occupied Manchukuo in 1931. ' ' Optimists searching ' for comfort contend that the Sino-Japanese war inay be of advantage to Laneashire in that it will lessen the competition from Japanese textiles. Shippilig companies may also benefit as freights rise aild Japanese competition is reduced." But for the depressing news in the Far East, markets must have been stimulated by the July trade returns, which show that British markets are expauding with almost sensatiohal rapidity. Gommodity prices tended downWard, notably wheat and cotton. Metals show iittle change. Butter remains Yveak and irregular. Finest New Zealand and Australian sold as low as 132/- and 111/-, tkough nominal quotations are higher. ' Tooley StrCet merChants- anticipate further quietness, with even lower prices. Bacon prices i'eached their highest point since 1929, mainly owihg to the improved industrial position. Bradford Is clos ely watching events m tho Far East, and ah.ipm.ents of textiles te Shanghai have ceased. Manufacturers are Also anxious lest supplies of camei hair from China are mterrupted. Opimons differ as to how the crisis will ali'eet the Australian wool saies. Oue view is that Japan will need more wool to keep pace with her military requireinents and the other is that, owing te the expense of war, she will not be able to atcord her usuai purchases.