Financial Notes
SECURITIES RALLY.
Ix the article prey-ding these notes I deal with some of the causes responsible for an improvement in securities during the past week. The outstanding feature has been the sharp rally in some of the Transatlantic industrial shares, which were directly affected by the proposed credit expansion in the States, referred to elsewhere. At the same time, other markets have shared in the improvement, Home Railways rallying on renewed hopes of some improvement in trade, while the better tendency of sterling has had a good effect upon high class investment stocks. These, moreover, have also been helped by optimistic forecasts of the Budget with a possible substantial reduction in income tax, though I cannot help thinking that these forecasts are just a little premature, too much stress, perhaps, being laid upon the great inflow of income tax revenue during the first month of this year. The speculative markets have shared to some extent in the general improvement, and South African Mining shares have been helped by renewed support from Paris.
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