BRITISH TRADE.

Hokitika Guardian, 5 June 1929, Page 7

BRITISH TRADE.

FORTNIGHTLY REVIEW. UNSETTLED OUTLOOK AFFECT MARKETS. t'juiLtd Press Association—By Electru, 'telegraph—Copyright). LONDON, June !.

For the past ten uays comlitions on ilio otock ivxchange have bee(s very unsettled, tn-e general election, uncei tainty regaining the reparations question, and the slump on Wall Street a;, lending to restrict business and cause (litlincss hi most markets. On Frida., morning came the news of the King’s illness, which increased the depression and naturally things did not improve as the day on and the Social is success at the polls became more pro liounced. Even reports of an agreement being reached at the 1 Reparations Conference failed to improve matters, hut though prices were marked down ail round the declines were only small and sales very few.

In regard to the future, the financial editor of the “Morning Post” writes: “The next few days are likely to be characterised by great re straint iii Stdbk Exchange dealings, and even if the favourable reports that an agreement has been reached at the Reparations Conference should be confirmed it is doubtful whether in the present temper of the markets much effect is likely to be produced. The effect of the political .landside here upon foreign markets has yet to be gauged, while a truer test of market conditions will be applied when investors all over the country have had the week-end to consider the possibe effect of the accession to the strength of the Socialist Party.’ s

Another financial editor nays • “There is a general feeling in the City that we are confronted with a new and difficult situation, one effect of which will probably ibe to restrain all kinds of activity for some little time to come. With a'fairly strong Opposition, the City may not be immediately fearful of any violent Socialistic legislation. On the other, hand, the hopes which had been entertained during the last few weeks that the return of the Conservative Government, with a working majority, would ensure rapid stimulus to trade activity throughout the country have to be abandoned for the present. While inactivity on the Stock Exchange usually means a falling rather than a rising in securities, the slump in wheat values brought that commodity into the select group of articles which can ’be bought wholesale at pre-war prices.” Commenting on The situation, the “Investors’ Chronicle” says: “The belief that still lower prices will he reaohed is undoubtedly encouraging the decline, for few will buy when prices are falling. The reactions of the low price for the world’s chief staple food "must prove important in due course, and lead to further cheapening of flour and bread. Cheap wheat should certainly favour Europe as a whole, and will mean in the coming autumn that the amount Europe has to pay America for grain (an important factor influencing the sterling and dollar exchange rate) will he smaller than has been usual in late years.”

fruit tr ade. Although arrivals of Australian and New Zealand apples have recently been heavy, the demand has improved owing to the decrease in American supplies, and as the quality of fruit from all States has been generally satisfactory, prices have firmed in all markets except which appears to be receiving more apples than can conveniently be handled there. We have now passed half wayin the Australian and New Zealand season, and the results appear likely to be satisfactory to the finish. French cherries have been fairly plentiful, but will be smaller after Juno 15, when the Government restrictions on their import commences.

WOOL TRADE. Regarding wool a Bradford correspondent writes: “Though there were hopes that with the general election out of the way business would improve it is feared that the root cause of the depression goes much deepej than the influence of politics. Tinwool and textile industry in the entire world is more or less depressed at the moment, lack of confidence in current values being as much in evidence in Continental centres as in England. The demand in all markets is restricted to small quantities for immediate requirements. Little development can be expected until the users in all countries are satisfied that raw wool is again on a firm basis. Bradford quotations are largely nominal. There is not enough business to test the market.’’