The big market event this week will be Tuesday’s U.S. Federal Open Market Committee meeting. Economists are still somewhat torn between calling for a 25 basis point cut to interest rates, or a full 50 bps slash.

Friday’s brutal jobs report made 50 look more likely to some. “We’re sticking to our earlier call for a half-point cut, seeing the jobs data as countering both the boost to mortgage refinancing from the drop in long bond yields and the healthy auto sales reports,” says CIBC World Markets. “Equities should like the Fed’s aggressive action, as will at least the short end of the Treasuries curve.”

BMO Nesbitt Burns agrees that a 50 bps cut is likely, although it says, “It is possible, even likely, that October’s data will be the worst for this cycle and that a rebound in activity is in store. The Fed simply cannot afford to take that chance when there is not even a remote danger of inflation anytime within the foreseeable future. We believe it will be very difficult for the Fed to stop easing until there is solid evidence that the economy is improving.”

Following the Fed meeting, there will be non-farm productivity numbers out in the U.S on Wednesday, and unit labour cost data.

The producer price index is due Friday, along with Michigan consumer sentiment. “The Fed will likely get strong support for lower rates from next week’s October PPI data,” says BMO. “We look for a headline price decline, led by the energy sector where gasoline quotes fell sharply.”

In Canada, it will be a light data week, with the focus on housing reports. On Tuesday, building permit numbers are out.

Thursday will bring housing starts numbers. Sandwiched in between is the monetary policy report, on Wednesday.

“Governor Dodge has already given the headlines to the week ahead’s monetary policy report: flat to slightly negative second half growth, uncertainty over the timing of a 2002 rebound, and CPI falling below 2%,” notes CIBC.

“If there’s news, it will be in the accompanying press conference. The Governor will duck questions about the Canadian dollar, and play his part in reinforcing the message from Paul Martin that monetary policy, not fiscal stimulus, is Ottawa’s choice for an economic rescue.”

In other news, CIBC also expects to hear that the European Central Bank has cut interest rates a quarter point as well. BMO says that although the ECB has tended to disappoint again and again on the rate cutting front, it expects a 25 bps cut. It also looks for 25 bps from the Bank of England.

There will be a steady flow of earnings next week. Brookfield Properties, Glamis Gold, MDC Corporation and Talisman Energy report on Monday.

CGI Group Inc., Industrial-Alliance, Mosaic Group Inc., Oxford Property and Ritchie Bros. Auctioneers report on Tuesday.

Wednesday brings news from CAE, Canada Life, Canadian Natural Resources, Ensign Resource Service Group, Magna International, Molson, Rio Alto Exploratio, Sleeman Brewing and Wajax Limited.

On Thursday, BC Gas Inc., Enbridge Inc., Four Seasons Hotels, Kingsway Financial, Kinross Gold, Residential Equities REIT and Thomson Corp. report.

Friday brings Richland Petroleum’s earnings.