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