Stock prices around the world are expected to come under renewed selling pressure when markets reopen this morning.

The market will be anxiously looking ahead to a number of key events this week, notably the release of EU gross domestic product data on Thursday and the publication on Friday of US retail sales and production numbers. If any of these economic indicators show a further slowdown then share prices are likely to be the first to feel the heat.

In Europe, gross domestic product data will reveal how far the euro-zone economy was affected by the global downturn. Retail sales data from Germany and Britain will also be closely watched. The European Central Bank's governing council meets on Thursday to discuss monetary policy but no change in rates is expected.

Friday is the big day, with US retail sales and industrial production numbers and the University of Michigan's closely watched consumer sentiment survey for August all due.

"The retail sales data should be pretty interesting in trying to ascertain how much of the tax rebate cheques that have been hitting people's pockets have actually found their way through to the stores," said Kelly Tonkin, economist at Lehman Brothers in London.

Retail sales for August, due on Friday, are expected to rise 0.3 per cent and 0.5 per cent excluding autos after no change in the headline rate and a 0.2 per cent rise without cars in July.

Consumer spending has been one of the US economy's few strengths in recent months.

However, data on Friday showed US unemployment hit a four-year high as companies hacked 113,000 workers from their payrolls. The jobless rate climbed to 4.9 per cent from 4.5 per cent in July.

Also out on Friday, US industrial production data for August will be closely watched.

"The industrial sector is particularly interesting because that is where the recession has been concentrated," said Mr David Smith, chief economist at Williams de Broe.

He said the National Association of Purchasing Management's August survey, which suggested a rapid deceleration in the rate of contraction in manufacturing, indicated industrial production might have risen.

"`If the figure is consistent with that, it might cause people to think the US is at its bottom or quite close to it," Mr Smith said.

In the euro zone, gross domestic product data due on Thursday is expected to show growth has slowed in the second quarter.

Economists polled by Reuters expect growth to have slowed to 0.2 percent, compared with the first quarter, from 0.5 per cent in the first three months of the year. Year-on-year growth is forecast to have slowed to 1.9 per cent from 2.5 per cent.

Separately, French GDP growth, due on Tuesday, is expected to show growth slipped to 2.4 per cent year on year in the second quarter from 2.9 per cent three months earlier.

Other data due includes German retail sales for July, which are expected to have risen 0.1 per cent month on month and 2.7 per cent year on year.