SLUMP PSYCHOLOGY SHAKEN OFF

Hawke's Bay Herald-Tribune, Volume 81, Issue 62, 6 December 1937, Page 7

SLUMP PSYCHOLOGY SHAKEN OFF

- Press Assn.-

London Markets are Again Active RUTTER PRICES FIRM

(By Telegraph-

— Copyright.)

(Eeceived 6, 8.45 a.m.) LONDON, Dec. 4. The City, at least for the time being, has shaken off slump psychology. Although some people still believe that a recession in trade is possible in 1938, few people imagine it will be serious. It ifc hard to find definite reasons for the sudden change in sentiment. Wall Street has been undeeided, and there are few tangibl signs of improvement in the American position. On the contrary, the l .ty is more optimistic over the international situation following the Anglo-Frer >h talks, though this, to . some extent, has been offset by the gravity of the news from the Far East. Buying so far has come from large investment houses rather than from the public. Three new investment trust companies with a total capitalisation of £4,250,000 have been launehed during the week, emphasising the view that prices have gone low enough. There has been a restriction during the week for commodities. The reduction in rubber quotas has stiffened the market, but it has not revived speculative interest. The November tin stitistics will not greatly help the International committee when it reviews the quota on December 10. World consumption at present appears to be at the rate of • 160, OuO tons per annum, justifying a quota 65 per cent., whieh is very unlikely. Yiolent fluctuations in the price of wool led to renewed consideration of the possib^-^y of extending the duration of the overseas, selling seasons. Butter is steady, with a good general inquiry, as buyers who have let themselves run bare of stocks have been forced into the market. The present firmness may continue, as the north of England is very short of Empire butter, which at present is in demand owing to the higa price for Danish. Cheese is also firmer, owing to the fact that practically no New Zealand supplies are offering. The demand, however, is rather poor. Eggs are featureless.