DUBIOUS OUTLOOK
LONDON MARKETS DECLINE REFLECTION OF CONDITIONS IN AMERICA. ABNORMAL DEMAND FOR GOLD. LONDON, July 15. The reaction of Wall Street to unfavourable reports on home industry and renewed fears of international tension interrupted the return of confidence to the markets, which at the end of the week were in steady, if orderly retreat. All popular equities were marked down in sympathy with Courtaulds (who during the week announced a reduction of dividend accompanied by a writing down of shares) though no heavy selling pressure was encountered. It appears that Britain must rely on rearmament to keep things going until United States recovery is far enough advanced to have international repercussions. A slight decline in gilt-edged securities may reflect political fears, but these are more strongly revealed in an abnormal demand for gold, depressing the franc and sterling. Overseas trade figures also are causing anxiety, as they reveal with disquieting clarity a deterioration in Britain’s position, a decline in exports strongly suggesting that Britain’s prices are above world levels. Interest attaches to the current wool sales, as London is the only source of supply at this time of the year and prices indicate European buyers’ idea of values. It is significant that Yorkshire is buying, despite the holding of considerable stocks and disappointing consumption. Other commodities, with the exception of sugar, which is firm, have turned downward.
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Wairarapa Times-Age, 18 July 1938, Page 2
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228DUBIOUS OUTLOOK Wairarapa Times-Age, 18 July 1938, Page 2
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