The Key Influence on Markets as We Approach 2023

What’s in Today’s Report:

• The Key Influence on Markets as We Approach 2023
• Weekly Market Preview:  Can Economic Data Help Stop the Selling?
• Weekly Economic Cheat Sheet:  Core PCE Friday the Key Report

Futures are slightly higher on a mild oversold bounce following last weeks’ losses and a quiet weekend of news.

China announced the closing of schools in Shanghai on Monday in response to surging COVID cases, but the broader economic reopening remains on track.

Economically, the German IFO Business Expectations Survey was higher than expected (83.2 vs. (E) 82.0) as was UK Industrial Trends (-6% vs. (E) -9%) but neither number is moving markets.

Today the only notable economic report is the Housing Market Index (E: 34) and markets will want to see continued moderation in the data (housing remains a major contributor to high CPI so more progress on that front will be a mild positive).