This week will bring a light economic data flow, although traders likely won’t pay much attention until numbers that factor in the effects of the World Trade Center attack start being released.

The real focus will be on the political and military climate. “In the United States, all eyes will be on the skies over Afghanistan, but markets will also be looking for some signs of a bottoming in equities, after all the damage wrought this month,” says CIBC World Markets.

In Canada, it’s a light data week, with nothing until Friday. That day will bring the release of July GDP numbers and August industrial prices. It is expected that GDP will be negative, as it was in June.

“Since September will no doubt be a negative, and August saw a sizable employment drop, we may well be facing a four-month string of monthly declines, something not seen since 1991,” says CIBC.

In the U.S., the data flow looks a little richer. Consumer confidence numbers are due Tuesday. Traders are expecting a drop in the wake of the attack, so not much could surprise in this number either. Thursday will see the release durable goods data and new home sales numbers. On Friday, second quarter GDP numbers will be published.

“In this period of extreme volatility, the data are going to take a back seat to swings in fickle investor sentiment, particularly in a week with no major indicators on tap,” notes CIBC.

On the earnings front, there are just a couple of companies expected to report next week. AGF and Richelieu Hardware Ltd., will both announce earnings on Wednesday.