TRADE OUTLOOK.

Taranaki Daily News, 29 November 1921, Page 5

TRADE OUTLOOK.

CONDITIONS IN BRITAIN. SOME IMPROVEMENT. TONE OF. THE MARKETS. By Telegraph.—Press Assn.—Copyrlgtt. London, Nov. 26. The stock markets have been overshadowed by domestic and foreign and political considerations. The position is less hopeful in view of the possible outcome of the Washington Conference, but, despite this and the lack of public interest, quotations have been fairly well maintained. Gilt-edged securities generally are showing a hardening tendency on easier money conditions, though the upward trend of colonials has been checked by the small subscription to the South African loan, of which' the underwriters expect to receive a considerable proportion. Business in industrials is meagre, but there are 1 few alterations in prices, though Armament securities are flat as the result of the Washington proposals. The general slackness in business is causing members to agitate for the reintroduction of the present system of fortnightly settlements. They consider the absence of speculative facilities is responsible for the present stagnation. THE MONEY 7 MARKET. There is a distinctly easier • tone in the money market, and floating credits are abundant. Yesterday’s issue of Treasury bills was allotted at the unexpectedly low average rate of £3 14s 8d per cent. The outstanding feature of the foreign exchange market has been the weakness of France. The fluctuations of Belgian and French rates have been of a feverish character, reflecting the general uneasiness felt regarding German reparation payments. There has been considerable speculative selling of francs, and as the general feeling towards the French exchange has become somewhat pessimistic, even in France itself, there has been little support to counteract selling. It seems probably the dollar exchange will be influenced for some little time by the Washington Conference, and a higher rate than four dollars cannot at present be expected on purely economic grounds.

THE WOOL MARKET. The decline in wool values at the London auctions had only a slight effect on Bradford, where it was expected and completely discounted in advance. Now that operations have settled down and improved, business is being done at Tuesday’s level, ~ and the tone of the Bradford market has improved. Though topmakers are not operating extensively there is good inquiry for practically all quantities of tops. Spinners, however, are following a waiting policy, pending some further light on the value of coarse raw material. A good effect has been caused by Bawra’s statement on the statistical position of wool, showing that the consumption of merinos exceeds production, and that, if the sales continue on the scale of the last three months, the supplies of merinos will be exhausted by July. METAL POSITION BETTER. The outlook for the metal markets generally continues to improve, especially for copper. The demand for electrolytic from the United States and Germany, its principal consumers, has attained large proporations, causing considerable reduction in the heavy stocks in the United States. If the present rate of consumption continues they should soon be brought down to a fairly normal level. It is unlikely mine production will be increased until the world outlook has settled and the present stocks of electrolytic are greatly reduced. Tin is meeting with good demand from consumers in South 'Wales, America and Germany. Stocks in the East are still large, so that a big advance in price is not probable, but a gradual hardening is expected. There is a shortage of lead in the London market owing to the Continent buying largely the supplies which hitherto have been coming here. Producers in America and Mexico are holding for higher prices. Spanish shipments to the United Kingdom are on a reduced scale. WHEAT FREIGHTS. Wheat freights continue on the down grade. The present rates are: West Australia 46s 6d, Victoria and South Australia 50e. These low rates are rendered possible by the fact that a fair number of steamers are taking coal to Colombo. It is expected that the arrivals of butter to the end of the year will amount to 170,000 boxes of Australian and 246,000 boxes of New Zealand. In view of this large supply there is little prospect of the maintenance of present prices, but there is an excellent demand for all good butter, and the decline in prices is not expected to be serious, at any rate not till the New Y’ear.