Financial Notes
MARKET UNCERTAINTIES.
STOCK markets gave an unmistakable indication of their underlying trend as S0011 as it was thought likely that any sanctions to be imposed by the League of Nations in the italo- Abyssinian War would not be of the military order. The general price rise which began at the end of last week provided a measure of the extent to which prices had previously been held back by doubt as to the course of events in Europe. Nothing saps the vitality of markets like uncertainty, which,- if it is at all prolonged, may have a far more depressing effect on quotations than definitely bad news. During the present period of European unsettlement, the fear of an extension of the Italo-Abyssinian dispute has been the main cause of Stock Exchange disquiet. Its. effect has, been serious enough, but it has been partially offset by an accumulation of investment resources and by continued evidence of gradual trade recovery • in Britain, and also in • some oversea countries. These factors. go a good way towards explaining the ready response of mar-' kets to any change for the better in the international outlook., The rise in quotations which started last week seemed to have a definite basis in the international news, but there are still too. many quarters from which new uncertainties may arise to. leave much hope that any Stock Exchange recovery will proceed very far without interruption.
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