By James Langton

(April 24 – 10:20 ET) – This Thursday’s U.S. employment cost index report will likely be the most interesting economic release as far as market watchers are concerned.

The tightness in the labour market is a major concern for U.S. Federal Reserve Board. The report is expected to confirm a 4.1% annual rate, the highest since 1991. “If the CPI was any guide, stocks could be hit harder than bonds if wage inflation surprises on the high side of expectations,” say the analysts at CIBC World Markets.

This week’s U.S. GDP report is expected to show the U.S. economy chugging at a nearly a 6% pace. “Add it all up, and there will be lots to worry over for investors concerned about an economic overheating stateside,” says CIBC.

In Canada, the GDP is expected to show a pause for the month of February. But those who hope for some slack from the Bank of Canada will be disappointed, say economists. BOC Governor Gordon Thiessen is speaking in Quebec on Wednesday, where he is expected to hint at higher rates, or at least do nothing to dispel the expectation.

Fed chairman Alan Greenspan will be speaking on Thursday, in the wake of the ECI data. Most European markets will be closed on Monday.