News from the military and political spheres are likely to continue to weigh on trading next week. Nevertheless, there will be more data out illuminating the economic aftermath of the September 11 attacks.

The latest industrial production and capacity utilization numbers are out on Tuesday, and they are expected to show further deterioration. CIBC world Markets suggests that the numbers won’t get that much attention.

On Wednesday, housing starts data is out, and U.S. Federal Reserve Board chairman Alan Greenspan will be speaking to the Joint Economic Committee of Congress. BMO Nesbitt Burns says that this is likely the most important scheduled event of the week, and that Greenspan will try to soothe the markets.

CIBC agrees, noting, “He won’t want to doom and gloom on the economy given how fragile sentiment is already. But he will acknowledge that the battle against recession is yet to be won, and likely won’t try to stand in the way of soaring Congressional support for fiscal stimulus.”

Thursday will see Canada’s first numbers of the week, with the Consumer Price Index released and manufacturing shipments numbers. BMO says that these reports shouldn’t be that timely or important.

On Friday, the U.S. Consumer Price Index is out, along with trade balance numbers in both the U.S. and Canada. “In the U.S., the data will only put the finishing touches on the picture of an economy in decline in the third quarter,” says CIBC World Markets. “Earnings reports, and the market’s taste for looking past current losses, will continue to drive equities.”

“In Canada, with a week to go before the Bank of Canada’s rate announcement, the market will keep a close eye on the coming week’s data on trade and manufacturing,” says CIBC. “If, as we expect, these reports confirm a goods sector that was still in decline in August, and CPI looks unthreatening, expectations will remain centred on a half-point rate cut on October 23.”