DULL MARKETS

Rotorua Morning Post, Volume 3, Issue 700, 28 November 1933, Page 5

DULL MARKETS

(Press Assn.-

INVESTORS TIMID apprehension prevalent regarding dollar and franc DOMINION STOCKS FIRM

— By Telegraph— Copyright).

London, Nov. 26. The stock markets have recently presented a very dull appearance, which is not surprising when the uncertainties of the international situation are considered. A well-informed financial writer says the investment market is still apprehensive regarding the outcome of the dollar depreciation policy and the French position is creating some misgivings. The virtual collapse of the Disarmament Conference was also a , disturbing f aetor. Amid these surroundings the favourable trend of home developments as reflected in a brighter trade and hopeful revenue returns, fail to have any beneficial effect. Snch were the conditions prevailing till Thnrsday, when brokers and jobbers began to take a more optimistic view and there was a general recovery in prices though business is not very active or satisfactory. Australian and New Zealand stocks generally remained firm when British funds showed weakness. Australia's position is now regarded as most satisfactory and newspaper comments are unanimously

laudatory. For instance, the Sto.ck Exeliange Gazette has an article headed "Australia advances." Although President Roosevelt's policy of depreciation of the external value of the dollar is hampering the economic recovery of the world, it has had no great effect hitherto in Great Britain, but as the Economist's trade supplement points out the scope for further expansion of this country is definitely limited in the absence of improvement elsewhere. Moreover, the present level of activity canno.t 1 be maintained long in the face of the serious deterioration of other coun- j tries. For example, a further fall inl the value of the dollar has renewed! tho decline of the purchasing power i of agricultural countries and might: seriously weaken our export position. Individual Ind'ustries Meanwhile, as f ar as individual industries are concerned, the reports are satisfactory. Both in activity and volume inquiries in the engineering industry show no signs of falling off. Motor car manufacturers are working at full pressure and many firms are compelled to increase their staffs. The valuje of building plans passed in October, though somewhat lower than for the previous month, shows an increase compared with October, 1932. The chemical industry has made further headway and the pottery trade is more active. The shipping industry remains depressed, but recently there have been indications of a slight improvement with hardening freight rates. The boot and shoe manufacturers report a falling off in demand, but news from the textile districts is encouraging. The wool textile trade has experienced a striking recovery. The increase in the demand for rayon fabrics has been maintained, and even the cotton industry appears to have made some headway. Both Home and abroad the retail trade has been more encouraging during the past month and present indications point to further improvement.