The Canadian economy continues to shine while the U.S. economy is being compared to a company that should file for Chapter 11.

Housing starts in Canada rose to 210,500 in March. The new housing market continuing to show a high level of activity, Canada Mortgage and Housing Corp. reported Tuesday.

First quarter urban multiple starts were impressive, said CMHC, increasing by 13% compared with the same period in 2002. Rural starts in March were estimated at an annual rate of 21,700 units.

South of the border, U.S. consumers have been increasing their borrowing. A jump in credit-card spending contributed to a rise in consumer debt of US$1.5 billion in February to US$1.74 trillion. That compares with US$12.3 billion rise to US$1.739 trillion in the previous month.

McDonalds is one of many companies deciding not to provide management guidance in its financial report. Analysts are saying that these companies are worried about being penalized for not meeting their targets. Meanwhile, the hamburger chain is slashing its capital spending by 40%. Some analysts believe that McDonalds, as the most visible sign of America abroad, will pay for America’s war activities, particularly in Europe.

Such signs of gloom are contributing to weak futures trading. Equities trading is likely to get off to a slow start Tuesday.

At midday, London’s FTSE 100 index is down 0.96%. Frankfurt’s DAX is off 0.54%. Paris’s CAC 40 has slipped 0.46%.

Overnight, Asian markets closed down as investors locked in their profits. This was inspired by positive reports of military success in Baghdad.

Japan’s Nikkei Stock Average fell 118.57 points, or 1.44%, to 8,131.41. In Hong Kong, the Hang Seng Index fell 155.55 points, or 1.74%, to 8,806.66.