E-Minis Dented On Fedspeak, China Equities Eyed

The previously alluded to hawkish Fedspeak from Cleveland Fed President Mester (even though she stopped short of backing a 100bp rate hike later this month), coupled with further headwinds for automaker Tesla (an executive overseeing the AI & autopilot area of product development is leaving the firm), weighed on e-minis in early Asia dealing. The 3 major contracts are off worst levels but are still running 0.4-0.6% below settlement levels, with the NASDAQ 100 leading the decline.

• Note that there will be some focus on the Chinese equity sphere on Thursday, after U.S. SEC chief Gensler expressed doubts that negotiations between the U.S. & China will result in an agreement that facilitates the required level of auditing of Chinese companies that the U.S. is pursuing. A reminder that this is required to prevent the delisting of Chinese firms from U.S. stock exchanges. Note that the NASDAQ China Golden Dragon Index managed to shrug off the news, finishing Wednesday’s session 1.3% above Tuesday’s close (albeit off best levels).