What’s moving markets this week? Cannabis reform, US-listed Chinese stocks and Fed officials warm up to slowing rate hikes – The Average Joe
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    What’s moving markets this week? Cannabis reform, US-listed Chinese stocks and Fed officials warm up to slowing rate hikes

    victorlei

    November 17, 2022

    1/ Cannabis reform legislation makes its way to Biden. Per Marijuana Moment, it’s the “first time a standalone piece of marijuana reform legislation has ever been sent to the president’s desk.”

    • Unfortunately, it’s not the bill that’ll send cannabis stocks skyrocketing (i.e., decriminalization, making banking accessible).
    • The bill “would eliminate the red tape that hinders cannabis research, opening the door for new innovative treatments” — Senate Majority Leader Chuck Schumer.

    But it is one step closer to legalization. The AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) is up nearly 35% since Biden said he would pardon all federal marijuana possession offenses.

    2/ US-listed Chinese stocks gained momentum. Alibaba (NYSE:BABA) — China’s e-commerce giant — beat earnings forecasts and is up 17% this week.

    Tensions between the US and China also showed some improvements.

    • President Biden and China’s leader Xi Jinping met in Bali — cooling fears of a cold war.
    • US regulators said they gained “good access” to US-listed Chinese stocks as part of their audits, per Reuters.

    3/ Fed officials warm up to a 0.50 percentage point hike in December. On Wednesday, Federal Reserve Governor Christopher Waller said:

    “The data of the past few weeks have made me more comfortable considering stepping down to a 50-basis-point hike” — “but I won’t be making a judgment about that until I see more data.”

    Markets are going to be real disappointed if we don’t get the five-o.

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