World Economic Forum (WEF) Annual Meetings – Day 1, this time is held in Davos for Bankers, Political, trade & finance Ministers and Commercial leaders from around 90 countries. Can influent market volatility.

In the US, Federal Budget Balance, measures the difference between government’s income and expenses over the past month, further reduce is expected from -98.5B on November down to -138.0B now.

Last week the Bank of Canada members left the interest rate unchanged at 1% confident in the current market situation but worried about possible downside risks from the European continent. Ivey PMI jumped in October to 59.9 after dropping to54.4 in September indicating improvement in the Canadian economy. WillCanada be able to avoid the harsh impact of the European debt crisis?

In the statement accompanied to the decision, the BOC mentioned the growing worries for the global economy, but also discussed an improvement in the US.

In the US, Unemployment Claims, weekly indicator to value the individuals who filed for number of unemployment insurance submissions on the past week, rise of 1K is expected up to 389K.

Last week, manufacturing sales jumped by 2.6%, well above the 1.1% rise expected and inflation grew more than predicted with CPI rising 0.2% and Core CPI increasing by 0.3%. However foreign securities purchases dropped more than anticipated to 7.35 billion after an encouraging figure of 8.22 billion in the previous month. Let’s see what awaits us this week.

In Canada, Bank of Canada (BOC) Governor Mark Carney, is due to speak in Toronto.

Last week, Canadian dollar dropped due to growing demand for U.S. currency following Italy’s bond turmoil, but this reversed. Housing starts increased more than anticipated reaching 208,000 from 192,000 in August and new housing price index climbed 0.2% in line with predictions. Will the EU turmoil affect growth in the Canadian market?

In the US, Charles Plosser, Federal Reserve Bank of Philadelphia President, is about to lecture in Philadelphia

Last week, Canadian GDP came out better than expected expanding 0.3% indicating a positive growth rate in the third quarter. However employment data disappointed with an unexpected decrease of 54,000 in the number of jobs while an increase of 16,300 was forecasted and a worse than predicted Unemployment rate reaching 7.3% from 7.1% in the previous month. Will the Canadian market prove its resistance in face of global uncertainty?