The key event scheduled for release on Tuesday is consumer confidence, which is expected to remain at a depressed level. Meanwhile, in Canada, attention will be focused on the federal government's long anticipated annual budget.
Economists are expecting to see little change in the U.S. Conference Board's index of consumer confidence. The index fell to all-time low reading of 38.0 in December, and is forecast to uptick to 39 in January.
"The new year is bringing a succession of bad economic news--mounting job losses, declines in stock prices and home prices, and a mild back-up in gasoline prices," said the economics team at IHS Global Insight, who forecast a reading of 35.0.
In a speech from the Throne opening the second session of the 40th Parliament on Monday, the Canadian government said it would "spend what is necessary" to help stimulate the economy.
The Government of Canada's budget is expected to mark the first venture into deficit financing for any government in more than a decade. A senior government official told reporters last week that the budget would contain $34 billion in spending for 2009-2010 and another $30 billion for the following year.
Before the release of the budget, Bank of Canada Governor Mark Carney will speak on the state of economy in Nova Scotia.
U.S. Retail sales continue to be closely watched. Despite massive discounting on the part of retailers, core sales have been falling. Economists at Nomura note that the ICSC-Goldman Sachs weekly chain-store sales index has "shown some signs of stabilization in the first half of January." They will be looking for some signs of sustained improvement this week.
No real improvement is expected in the U.S. housing sector in the U.S., however. According to the S&P/Case-Shiller Composite index, house prices were down 18.04% in October and are expected to drop by 18.40% in November.
All times in EST.
7:45 US ICSC-Goldman Sachs Chain Store Sales W/E Jan. 24 Prior: + 1.8%
8:30 CA Canadian Employment Insurance Report November Prior: +0.7%
8:55 US Redbook Retail Sales W/E Jan. 24 Prior: -2.3%
9:00 US S&P/CaseShiller Home Price Index November Prior: +158.16
9:00 US S&P/CaseShiller Composite-20 (Y/Y) November Exp: -18.40% Prior: -18.04%
10:00 US Consumer Confidence January Exp: 39.0 Prior: +38
10:00 US Richmond Fed Manufacturing Index January Exp: -50 Prior: -55
10:00 US December Regional State Employment & Unemployment Report
10:50 US BOC Governor Carney Speaks on Economy in Nova Scotia
11:30 US Treasury to Sell $32 Billion in 4-Week Bills
12:00 CA Federal Government Releases 2009-2010 Annual Budget
13:00 US Treasury to Sell $40 Billion in 2-Year Notes
17:00 US ABC Consumer Confidence 25-Jan Exp: -53 Prior: -53
By Steve Stecyk and edited by Sarah Sussman
©CEP News Ltd. 2009