By James Langton

(April 9 – 07:40 ET) – Traders and investors will try and avoid further hits this week in a four-day session preceding market closure on Good Friday. “After last week’s employment shocker, markets are geared to finding recession hints in the U.S. data,” says BMO Nesbitt Burns. “It may take a couple of weeks for softer data to materialize.”

The only major economic release in Canada will be out today. That will be the housing starts for March. “It is expected that housing starts edged moderately lower to 150,000 units, following the decline in the value of building permits issued in February. Despite uncertainty about the course of Canadian economic growth, housing affordability and respectable job growth will continue to provide support to Canada’s new housing market in the coming months,” say TD Waterhouse economists.

In the U.S., the data is expected to help solidify the gloom. “It will provide financial market participants with more evidence that the relentless stream of job layoff notices and sputtering equity markets have further eroded consumer confidence and reeled in consumer spending.”

The American retail sales numbers are due out Thursday, along with the Producer Price Index. Retail sales are expected down 0.2%, flat ex autos. The PPI should drop 0.1%.

The other event of the week will be the European Central Bank’s meeting on Wednesday to consider its interest rates. “Although there are widespread expectations that they will finally move to cut rates, such a move is not written in stone,” say the analysts at BMO. “Monetary growth and inflation trends are still well above desired targets. If the stand-pat stance is prolonged, it would have detrimental effects on the European economy that is already showing signs of strain.”

There aren’t many confirmed earnings releases in Canada this week. Jean Coutu Group is due to report Tuesday, joined by Metro Inc., Spectra Premium Industries Inc. and Teknion Corporation. Research In Motion is set to report on Wednesday, along with Rogers Communications and Toromont Industries Ltd. But that’s it.

Unfortunately it’s likely the firms which have to warn investors that will grab the headlines.