Financial review

Quarterly Bulletin 1977 Q3
Published on 01 September 1977

The review describes developments in various financial markets, mainly in the period May to July.

The money market Conditions were fairly tight in May but thereafter fluctuated considerably. The Bank's minimum lending rate fell from 8¼% at the beginning of the period to 7% by early August.

Capital markets In the gilt-edged market, yields rose on balance and turnover dropped sharply; two variable rate stocks were launched. In the equity market, prices rose strongly at first but then fell back somewhat, and new issues were sharply up.

Foreign exchange and gold markets The pound was held at $1.72 against the US dollar until 27th July; it then recovered the ground it had lost in effective terms since the latter part of June. The dollar weakened markedly against the Japanese yen and the 'snake' currencies.

Euro-currency markets In the second quarter, the growth of the London market seems to have slowed down.

Oil money movements The oil-exporting countries' revenues were higher in the second quarter than in the first, but their estimated surplus was rather lower.

Commodity markets Trading was generally quiet during May to July, and most prices fell.

PDFFinancial review

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