The shocking events last week have made much of the minutiae that markets agonize over seem irrelevant. Even as things get back to normal, the uncertain political and military situation is likely continue to dominate the market’s action.

Consensus among economists seems to be that the attack on the U.S. will ensure a recession in the U.S., and likely in the rest of the world. Its duration is likely to be dictated by the sort of engagement that follows. A prolonged period of uncertainty will obviously be bad for the economy and markets. A quick strike followed by redoubled security efforts is expected to lead to a healthier economy in the medium to long-term.

The economic data releases in the week ahead in the U.S. likely wonÕt have much impact. The U.S. is releasing consumer-inflation numbers on Tuesday. The international trade balance and Beige Book are due out on Wednesday. Thursday will bring the latest housing start numbers. CIBC says that the CPI is not a focus anymore, and the other releases are of secondary concern.

In Canada, consumer inflation numbers are due out on Tuesday. On Wednesday, the latest trade data will be announced. On Friday, retail trade numbers are due out. “The absence of any meaningful recovery in retail sales after JuneÕs drop, and a very poor reading on July exports, will cement growing expectations for more aggressive Bank of Canada rate cuts,” says CIBC.