MARKETS IDLE

Hawke's Bay Herald-Tribune, Issue 191, 30 August 1937, Page 5

MARKETS IDLE

—Press Assn.

"Wait-and-See" Policy in London THE FAR EAST CRISIS

(By Telegraph

.— Copyright.)

(Eeceivea 5U, J.U.4U a.m.; LONDON, Aug. 29. The markets have drifted into such io'.eresa that the number o? transictions on the Stock Exchange during the week has been 25 per cent. below those for the corresponding week last year. The trend of prices is downward, not becauso of much selling, but because buying is practically at a standstili. Investors are adopting a ' •wait-and-see" policy. Nevertheless, the technical position is immensely strong. Shipping shares have been a weak feature after the speech delivered by Lord Craigmyle. at Loith recently. Lord Craigmyle said that the prices of ships had reached a level making it practically impossible for shipowners to hope for even & moderate profit. It was imprudent to lay down ships at to-day's prices. P .and O .doferred stock have dropped two shillings, other companies being also affected. Commodities are still lifeless owing to the uncertainty of the Far Eastern situation, a notable exception being wolfram and antimony, of "w%ach China is the principal exporter. The consumption of it has been rapidly increased, as it is essential for armaments. The Far Eastern situation is also responsible for heavy selling of silver, which has been depressed to the lowest price of the year. If even a small proportion of China's enormous • stocks were offered ,it would be sufficient to swamp the market.