Despite some key economic news coming out of the U.S. Thursday, investors are still focusing in the war. An article in the Washington Post predicting that the Iraq invasion could last for months is rippling through U.S. media and therefore the markets.

This morning a group of anti-war protestors staged a “die-in” in front of the NBC studios in Manhattan, snarling traffic and holiding up the beginning of the business day. A story from MSNBC revealed that President George Bush’s “coalition of the willing” actually consists of many country’s that are inconsequential to the actual war effort, such as several South Pacific Islands.

Meanwhile, the American Department of Commerce is reporting that fourth quarter GDP was up a 1.4%. Though, due to the potential impact of the war, U.S. analysts are reluctant to comment on the impact of the GDP number.

U.S. initial jobless claims dropped last week by 25,000 to 402,000. That’s the first drop in six weeks, though the number remains above the key level of 400,000.

Here at home, Statistics Canada is reporting that higher prices for petroleum products continue to influence the change in manufacturers’ prices, as measured by the Industrial Product Price Index. The IPPI increased 0.6% in February, following a 0.3% rise in January. On an annual basis, the IPPI rose 2.3%, its seventh consecutive increase.

Overseas, Hong Kong’s market stumbled due to fear over an outbreak of severe acute respiratory syndrome. On Thursday, the government ordered quarantines of more than 1,000 people who may have been exposed to SARS. The Hang Seng Index fell 174.77 points, or 1.9%, to finish at 8,872.32.

In Tokyo, the Nikkei Stock Average rose 16.75 points, or 0.2%, to 8,368.67.

In Europe markets are down in early afternoon trading. London’s FTSE 100 has fallen 1.2%. Frankfurt’s DAX is down 0.86%. Paris’s CAC 40 has dropped 1.89%.

North American futures markets are also down pointing to a negative day on the equity markets.

In other news, the House of Commons finance committee report on bank mergers is expected to be table in Parliament today. The report could set off a flurry of deal-making on Bay Street among Canada’s big banks.

As well, Ontario’s Conservative government will break with centuries of tradition when it delivers the provincial budget at an auto-parts facility some 50 kilometres from the legislature. The government is expected to continue its commitment to tax cuts.