Risk appetite is slightly elevated, but volumes are low, after absorbing a slew of central bank policy meetings. Yesterday, Swiss National Banks, Bank of England and Bank of Japan all held policy unchanged. USD gains marginally on lower expectations for easing and uncertainty over US-China trade talks. CHF and JPY gained on safe-haven trade as rhetoric between US, Saudi and Iran ramped up. Gold prices inched higher on the general concern over middle east developments. Interesting Asians equity markets here higher with lone exceptions of Hang Seng were protests continued to weigh on investors sentiment. Crude prices continued to moderate following the 14th Sept attack on Saudi Arabia oil infrastructure. Information flows suggest the attack was most likely a one-off and full production will have resorted relatively quickly. While the exact timing of facilities repair might vary the general view is upside in crude is limited.
Momentous House vote cannabis banking bill
A historic full vote in the U.S. House of Representatives that might changes the US cannabis industry forever will happen later this month. House Majority Leader Steny Hoyer, a Maryland Democrat, plans to put the SAFE Banking Act to a vote before the end of September. According to CNN “The SAFE Banking Act would provide protections for banks that work with marijuana companies since the substance is still illegal under federal law, despite several states having legalized medical or recreational marijuana”. In short, this bill will allow financial institutions to service cannabis-related companies and ancillary businesses without fear of federal prosecution. In March, the House Financial Services Committee advanced the bill by a decisive 45-15 vote. The full House bill approval is expected.
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