In Europe, the focus of attention is on the meetings of the European Central Bank (ECB) and the Bank of England (BoE) meetings, which are both scheduled for Thursday. ECB president Jean-Claude Trichet has tagged this as an "important meeting" and expectations are mounting for an interest rate cut of 50 basis points by both central banks.
Meanwhile, the main economic data release will be the preliminary Gross Domestic Product (GDP) for the fourth quarter, which is expected to be hindered by the global economic slowdown. The release of the Estimate Consumer Price Index (CPI) for the February will reveal pricing trends in Europe. Data on the manufacturing and services sectors will also be issued.
In the UK, apart from the decision of the BoE policy meeting, the Purchasing Manager Index (PMI) for the manufacturing, construction and services sectors will also hit the wires. Elsewhere, the Producer Price Index (PPI) is expected to decline to 1.2 per cent in February.
In the US, the economic calendar features quite a few important economic indicators. The schedule will commence with the release of the personal income and spending during January. Meanwhile, the MBA mortgage application will highlight the condition of the US housing market amid expectations that construction spending has deteriorated further in January.
The Fed's Beige Book is also due to be released this week, providing a summary of Federal Reserve commentary on current and economic conditions.
The ISM manufacturing, non-manufacturing composite, factory orders and non-farm productivity will provide an assessment of both the productivity and efficiency of US industry.
Towards the end of the week there will be the release of the unemployment rate, which is expected to have surged to 7.9 per cent, and figures on changes in non-farm and manufacturing payrolls, revealing the state of affairs in the labour market.
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