The U.S. consumer price index climbed 0.3% in January, quelling any fears that inflation is on the rise south of the border. The core index, which excludes food and energy items, rose just 0.1%.

It’s good news, though it’s not expected to drive markets up beyond the flat trading going on in the early morning future markets.

The only release in Canada concerns housing starts, which are expected to reach 205,500 units this year, according to Canada Mortgage and Housing Corp.’s first quarter Housing Outlook.

“Low mortgage rates, continued employment and income growth and rising migration, will support a vibrant housing market again this year,” says David
Weingarden, senior economist at CMHC. “Construction will remain robust in 2004, with housing starts reaching 195,100 units. The slight decline in housing starts in 2004 will be due primarily to expected increases in mortgage rates.

Most Asian stock markets finished lower Friday. The weakness in Asia followed Thursday’s decline on Wall Street. Japan’s benchmark Nikkei Stock Average fell 137.38 points, or 1.6%, to 8,513.54. In Hong Kong, the Hang Seng Index fell 139.62 points, or 1.5%, closing at 9,250.86.

In London, the FTSE 100 index is down slightly Friday afternoon, slipping 7.6 points to 3,679.6. There were minor losses in Frankfurt and Paris, too.